Malibu Corporation has monthly fixed costs of $192,000. It sells 2 products for which it has provided
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Question:
Malibu Corporation has monthly fixed costs of $192,000. It sells 2 products for which it has provided the following information.
Product 1 (sales price=$12) (Contribution margin =$9)
Product 2 (sales price=$20) (Contribution margin =$6)
A. What monthly sales revenue is required to break even if the relative sales mix is 40% for product 1 and 60% for product 2
B. What total monthly sales revenue is required to earn a monthly operating income on $81,000 if the relative sales mix is 20% for product 1 and 80% for product 2?
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