Finley Corporation has monthly fixed costs of $67,000. It sells two products for which it has provided the following information.ContributionSales PriceProduct 1Product 2$1520Margin$94a. What total monthly sales revenue is required to break even if the relative sales mix is 30 percent for Product 1 and 70 percentProduct 2? (Hint: Determine the contribution margin ratio for each product.) (Round your answer to the nearest dollar amount.)b. What total monthly sales revenue is required to earn a monthly operating income of $16,000 if the relative sales mix is 20 percefor Product 1 and 80 percent for Product 2? (Round your answer to the nearest dollar amount.)Answer is complete but not entirely correct.a.Break even sales revenue$ 190,625b.Target sales revenue$275,000B

Step 1: Step 2: Step 3: Step 4:

Answered: Finley Corporation has monthly fixed…

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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Fanning Company makes a product that sells for $30 per unit. The company pays $19 per unit for the variable costs of the product and incurs annual fixed costs of $88,000. Fanning expects to sell 22,900 units of product. Required Determine Fanning's margin of safety expressed as a percentage. (Round your percentage answers to 2 decimal places (i.e., 0.2345 should be entered as 23.45).) Margin of safety % < Prev 10 of 10 Next
Fanning Company makes a product that sells for $30 per unit. The company pays $19 per unit for the variable costs of the product and incurs annual fixed costs of $88,000. Fanning expects to sell 22,900 units of product. Required Determine Fanning's margin of safety expressed as a percentage. (Round your percentage answers to 2 decimal places (i.e., 0.2345 should be entered as 23.45).) Margin of safety
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