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 $__________.

Question

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 $__________.

Quizplus · Accepted Answer

The Answer of 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 $__________.

Multiple Product Companies