Business Description After taking business classes, Cyrus, an avid sportsman, decided to start selling unique sporting supplies for children at trade shows. He has two products: Product 1: "Ultimate Frisbee"- an aerodynamic frisbee that will sell for $15.00. Product 2: "Booming Boomerang"- a handcrafted wooden boomerang set. The boomerang will sell for $30.00. a Costs: Cyrus has hired an employee to work the trade show booths. The work contract is $1,000 per month plus a commission equal to 15% of selling price. Cyrus will also spend $545 per month on trade-show entry fees. Cyrus is purchasing the products from a supplier in Mexico. Ultimate frisbee costs $3.00 each; Booming boomerang cost $8 each. Shipping and handling on the Frisbee will cost $1.20 each; Shipping and handling on the Boomerangs which are heavier, will cost $4.00 each. The shipping and handling costs will be paid by Cyrus, not the customer. Assume Cyrus expects to sell 200 Frisbees and 100 Boomerangs during his first month of operations (November). The sales mix is 2" Frisbees" for every 1 "Boomerang" or a 2:1 ratio. Cyrus' long-term financial goal is to earn an operating income of $4,200 per month. 4) Calculate the CM per composite unit (in salmon colored box). Check figure: CM per composite unit = $30.60 5) Use the CM per composite unit to calculate the TOTAL number of composite units needed to breakeven (lavender box in the TOTAL column). THEN, calculate the number of EACH type of product needed to breakeven (first row of grey boxes). Finally, calculate the sales revenue associated with this volume for EACH product, and then add those to get the sales revenue at breakeven in total (second row of grey boxes). Check figures: B/E units Product #1 = 101; B/E units Product #2= 50 6) Use the CM per composite unit to calculate the total number of units needed to achieve Cyrus' target profit (TOTAL COMPOSITE UNIT column in the lavender box). THEN, calculate the number of EACH type of product needed to achieve the target profit. Finally, calculate sales revenue associated with this volume for EACH product, and then add those to get the sales revenue in total. Check figures: Tol units of Product #1 =375; Tol units Product #2= 188 Calculation of Contribution Margin per Composite Unit Product #1 Product #2 Total Sales Price Var. Cost per unit CM per unit X Sales Mix CM per composite unit Multiproduct Breakeven point: Product #1 Product #2 Total -in units Sales revenue at breakeven Product #1 Product #2 Total Multiproduct Target operating income: -in units Sales revenue at Target operating income