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Problem (18 Marks) You are the Chief Financial Officer of Max Gifts Company. A small company that sells Italian Memorabilia which are (1) snow globes
Problem (18 Marks) You are the Chief Financial Officer of Max Gifts Company. A small company that sells Italian Memorabilia which are (1) snow globes with boats and (2) snow globes with buildings inside. The company's August 2021 sales and expenses are provided below: Boats Globe Building Globes Sales $20,000 $80,000 Variable Costs $15,000 $40,000 No. Memorabilia sola 200 1000 Sales Mix 20% 80% Monthly Fixed costs are $37,000. Required: a. Compute the contribution margin per unit for each product. (3 Marks) b. Compute the weighted average contribution margin per unit. Marks) c. Compute the break-even point in units for the company. Marks) d. Compute the contribution margin ratio of each product. (3 Marks) e. Compute the weighted average contribution ratio. (3 Marks) f Compute the break-even point in dollars for the company
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