ou 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 Globe Sales $20,000 $80,000 Variable Cost $15,000 $40,000 No. Momorabilia sold 200 1000 Sales Mix 20% 80% Monthly Fixed costs are $37,000. Required: a. Compute the contribution margin per unit for each product.
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 Globe
Sales $20,000 $80,000
Variable Cost $15,000 $40,000
No. Momorabilia sold 200 1000
Sales Mix 20% 80%
Monthly Fixed costs are $37,000.
Required:
a. Compute the contribution margin per unit for each product.
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