Question

Malibu Corporation has monthly fixed costs of $69,000. It sells two products for which it has...

Malibu Corporation has monthly fixed costs of $69,000. It sells two products for which it has provided the following information.

Sales Price Contribution
Margin
Product 1 $ 15 $ 9
Product 2 20 4

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 for Product 2? (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 percent for Product 1 and 80 percent for Product 2? (Round your answer to the nearest dollar amount.)

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