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Rhinefold Brews Reduced Calorie Beer and Regular Beer

Question 20

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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.
-If Rhinefold's monthly fixed costs increase by $8,500, what level of monthly sales revenue will be required to break-even? $__________.

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($609,500 + $8,500)/...

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