Question 1
A new intern thinks that the profit for Deluxe Boxes are higher than those calculated using the lump sum method (as in Tab1). The intern suggests calculating the profits using an allocation method for fixed costs based on sales volume( the number of boxes sold) to split the Fixed Costs between the Standard and Deluxe Boxes. Required: (Complete the grey spaces): 1) First calculate the percenatge portion each product has of the total sales voume 1) How much fixed costs are allocated to each product based on the sales volume method suggested by the intern? 2) Also calculate the new operating profit percentage (based on sales) for each product.
	Standard Boxes	Deluxe Boxes	Total
Volumes (per Month)	9	1.5	10.5
Volumes per year (Millions)	108	18	126
Calculate the portion of Sales Volume (percentage sales volume)
Calculate how much fixed costs are allocated to each product.

New Profit Calculation	Standard Boxes ($Millions)	Deluxe Boxes ($Millions)	Total Boxes($ Millions)
Revenue	$ 2,030.40	$ 513.00	$ 2,543.40
Subtract Variable Costs	$ 1,080.00	$ 360.00	$ 1,440.00
Equals: Contribution Margin	$ 950.40	$ 153.00	$ 1,103.40
Subtract Fixed Costs
Equals: Operating Profit
Operating Profit % (based on Revenue)