Question

Rhinefold brews reduced calorie beer and regular beer. Sales of its reduced calorie beer represent 25% of the company's total revenue. Sales of regular beer represent the remaining 75% Reduced calorie beer has a contribution margin ratio of 80%, whereas the contribution margin ratio of regular beer is only 60%. Rhinefold's monthly fixed costs average $609,500. 9 What is the company's monthly break-even point expressed in sales dollars? S 10 What monthly sales level must be achieved for Rhinefold to carn a monthly operating income of $350,000? $ 11 If Rhinefold generates $1,400,000 in monthly sales, it will earn a monthly operating income of 12 Assume Rhinefold's margin of safety was $300,000 in May. What was the company's operating income in May? S 13 If Rhinefold's monthly fixed costs increase by $8,500, what level of monthly sales revenue will be required to break-even?

Answer 1

100 35 65 20 On an assumed 100 of totell salos Particulars Redred Regularo dal Caloofe be Sales devenue 25 75 less! verfable costs (52 Corstofbulfon (80.X25) (604x75)=45 Less: Foxed costs operating prcome. Overall cost of bullon roogin - 85) 100 - 854. q. moothly bepaleven pornt: fixed costs contorburgos morogoro = $609500/651 = $4/937,69203) 10 monthly operating Pncome meycomed - 30,000 contofbeelpon as theologe 350,000 +609,500-959,500 Sales acised - 959500 / 654. $1476153.87 Porticcolaos Amooot Coveralls Sales revenue 1400000 less: vaotable costs (490,000) Contofbeelfon (654*1400,000)-910000 Less: Hxed costs (609,500) operating income. 300,500 monthly operating income of 300,500) 12: Marge - safety = Sceles deuenue - Borkaes salos 300.000 = scores devede - 937,692.3 sceles deueue - 300,000 +937,692 3 = 1237692.3 operatfrog podfr - (657.* 1237,642. 3) - 609,500 = $ 1195000 13. New brecikeven sales CC09,500 + 8500)/65%. - $950769.23)