Multiple product companies
Pet Park International sells cat food and dog food. Its monthly fixed costs average $620,000. Cat food sales represent 80% of the company's total revenue. Dog food sales constitute the remaining 20%. The company has provided the following information expressed on a per-case basis:
(a) The total monthly sales revenue required to break-even is $__________. (Rounded)
(b) The total monthly sales revenue required to earn an operating income of $135,000 is $__________.
(c) The company's margin of safety at a monthly sales level of $2,500,000 is $__________.
(d) If monthly fixed costs increase by $10,000, the break-even point, expressed in sales dollars, will increase to $__________.
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(b) $...
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