Glow Worm Corporation makes flashlights and batteries. Its monthly fixed costs average $3,680,000. The company has provided the following information about its two product lines:
| Contribution Margin Ratio | Percentage of Total Sales |
Flashlights | 40% | 15% |
Batteries | 20 | 85 |
a. Determine the company’s monthly break-even point in sales dollars.
b. How much revenue must the company generate in the upcoming month for a monthly operating income of $1,380,000?
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