Stephanie Haven started a business last year making different flavors of fudge. Her fudge is packaged in

boxes of six pieces, and each box sells for $15\mathrm{.}00.$ In the most recent month, Stephanie sold $400$ boxes.

Stephanie is concerned about the future of her business, so she hired a management consultant to help her

manage her costs and profitability. The management consultant found the following cost structure:

Cost of ingredients is $2\mathrm{.}75$ per box.

$-$Labor time is $4\mathrm{.}25$ minutes per box.

Cost of kitchen rental is $2,500$ per month.

$*$Other expenses $($insurance$,$ supplies$)$ are $400$ per month.

REQUIRED

a$.$ Calculate the total fixed cost per month and the total variable cost per unit. $(5$ marks$)$

b$.$ Calculate the unit contribution margin, and the contribution margin assuming $600$ boxes

are sold. $(5$ marks$)$

c$.$ Calculate the breakeven point in units. $(5$ marks$)$

d$.$ Calculate the sales necessary in units and the revenue necessary for Stephanie to achieve

an operating income of $3,500$ per month. $(5$ marks$)$

e$.$ Discuss five of the limitations for the CVP analysis $($break$-$even analysis$)$ in Stephanie's

case. $(5$ marks$)$

f$.$ Assuming Stehanie sells $400$ boxes, calculate the Net profit margin ratio and comment

on the percentage, providing any recommendations for Stephanie's business. $(5$

marks$)$

g$.$ Assuming Stehanie's COGS is ${300}_{?}$ and the average inventory was $8,000,$ calculate the

Inventory Turnover ratio is days and comment on the number of days, providing any

recommendations for Stephanie's business. $(5$ marks$)$