Part $2-$ Short Answer Questions $[20$ points$]$

Prompt #$2\mathrm{.}1$

Carla's Soft Drinks Co$.($CSD$)$ brews reduced sugar soda and regular soda. Sales of its reduced sugar soda represent $25\%$ of the company's total revenue. Sales of regular soda represent the remaining $75\%.$ Reduced sugar soda has a contribution margin ratio of $80\%,$ whereas the contribution margin ratio of regular soda is only $60\%.$ CSD$\text{'}$s monthly fixed costs average $$609,500.$

A$.$ What is the company's monthly break$-$even point expressed in sales dollars?

B$.$ What monthly saler level must be achieved for CSD to eam a monthly operating income of $$350,000?$

C$.$ If CSD generates $$1,400,000$ in monthly sales, how much monthly operating income will the company earn?

D$.$ Assume CSD$\text{'}$s margin of safety was $$300,000$ in May. What was the company's operating income in May?

E$.$ If CSD$\text{'}$s monthly fixed costs increase by $$8,500,$ what level of monthly sales revenue will be required to break$-$even?