Glow Worm Corporation makes flashlights and batteries. Its monthly fixed costs average $1,690,000. The company has provided

Question:

Glow Worm makes flashlights and batteries. Its monthly fixed costs average $1,690,000. The company has provided the following information about its two product lines.
.................................... Ratio ...........Percentage of Total Sales
Flashlights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35%..................................................40%
Batteries . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 20 .......................................60
a. Determine the company's monthly break-even point in sales dollars.
b. How much revenue must the company generate in the upcoming month for a monthly operating income of $3,380,000?
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