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Question 1 (40 marks) 1. VIRTUAL Travel and Tours Company produces and sells two types of DVDs - the VR a tour of the famous
Question 1 (40 marks) 1. VIRTUAL Travel and Tours Company produces and sells two types of DVDs - the VR a tour of the famous castles along the coastal line in Ghana. The Company's December 2018 statement of sales and expenses are as follows: VR DVD CR DVD Sales Variable Expenses Contribution Margin c20,000 15,000 c5.000 c80.000 40.000 240.000 Total annual fixed costs are c27,000 Required: a) Determine the Company's sales mix 2 marks b) Determine the Company's weighted average contribution margin ratio 2 marks c) Compute the overall breakeven point in cedis 6 marks d) Determine the breakeven sales in cedis of the individual products 6 marks e) Verify that the breakeven point in cedis for the individual products is achieved. 4 marks
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