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Pet Park International sells cat food and dog food. Its monthly fixed costs average $620,000. Cat food sales represent 80% of the company's total revenue. Dog food sales constitute the remaining 20%. The company has provided the following information expressed on a per-case basis: Selling Price Contribution Margin $40 $30 $16 $9 Cat food Dog food The total monthly sales revenue to break-even is $_ (Rounded) The total monthly sales revenue required to earn an operating income of $135,000 is $ The compnay's margin of safety at monthly sales level of $2,500,000 is $_______. " **If monthly fixed costs increase by $10,000, the break-even point, expressed in sales dollars, will increase to $

Pet Park International sells cat food and dog food. Its monthly fixed costs average $620,000. Cat food sales represent 80% of the company's total revenue. Dog food sales constitute the remaining 20%. The company has provided the following information expressed on a per-case basis: Selling Price Contribution Margin $40 $30 $16 $9 Cat food Dog food The total monthly sales revenue to break-even is $_ (Rounded) The total monthly sales revenue required to earn an operating income of $135,000 is $ The compnay's margin of safety at monthly sales level of $2,500,000 is $_______. " **If monthly fixed costs increase by $10,000, the break-even point, expressed in sales dollars, will increase to $

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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4. Multiple product companies Pet Park International sells cat food and dog food. Its monthly fixed costs average $620,000. Cat food sales represent 80% of the company's total revenue. Dog food sales constitute the remaining 20%. The company has provided the following information expressed on a per-case basis: Selling Price Contribution Margin $40 $30 Cat food $16 $9 Dog food The total monthly sales revenue to break-even is $ (Rounded) The total monthly sales revenue required to earn an operating income of $135,000 is $ The compnay's margin of safety at monthly sales level of $2,500,000 is $ If monthly fixed costs increase by $10,000, the break-even point, expressed in sales dollars, will increase to $
Transcribed Image Text:4. Multiple product companies Pet Park International sells cat food and dog food. Its monthly fixed costs average $620,000. Cat food sales represent 80% of the company's total revenue. Dog food sales constitute the remaining 20%. The company has provided the following information expressed on a per-case basis: Selling Price Contribution Margin $40 $30 Cat food $16 $9 Dog food The total monthly sales revenue to break-even is $ (Rounded) The total monthly sales revenue required to earn an operating income of $135,000 is $ The compnay's margin of safety at monthly sales level of $2,500,000 is $ If monthly fixed costs increase by $10,000, the break-even point, expressed in sales dollars, will increase to $
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