Finley Corporation has monthly fixed costs of $67,000. It sells two products for which it has provided the following information. Contribution Margin $9 Product 1 Product 2 a. What total monthly sales revenue is required to break even if the relative sales mix is 30 percent for Product 1 and 70 percent Product 2? (Hint: Determine the contribution margin ratio for each product.) (Round your answer to the nearest dollar amount.) b. What total monthly sales revenue is required to earn a monthly operating income of $16,000 if the relative sales mix is 20 perc for Product 1 and 80 percent for Product 2? (Round your answer to the nearest dollar amount.) a. Sales Price $15 20 b. Answer is complete but not entirely correct. Break even sales revenue Target sales revenue $ 190,625 X $ 275,000 X
Finley Corporation has monthly fixed costs of $67,000. It sells two products for which it has provided the following information. Contribution Margin $9 Product 1 Product 2 a. What total monthly sales revenue is required to break even if the relative sales mix is 30 percent for Product 1 and 70 percent Product 2? (Hint: Determine the contribution margin ratio for each product.) (Round your answer to the nearest dollar amount.) b. What total monthly sales revenue is required to earn a monthly operating income of $16,000 if the relative sales mix is 20 perc for Product 1 and 80 percent for Product 2? (Round your answer to the nearest dollar amount.) a. Sales Price $15 20 b. Answer is complete but not entirely correct. Break even sales revenue Target sales revenue $ 190,625 X $ 275,000 X
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 5EB: Cadre, Inc., sells a single product with a selling price of $120 and variable costs per unit of $90....
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