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Presidential Corporation is a medium sized manufacturing company founded in 2012 to supply the Southern Caribbean with locally produced options. The Senior Accountant is preparing for a meeting with the executive leadership and has asked all management personnel to prepare reports and schedules based on their department and operational functions. The objective is to determine operational deficiencies and how they can reduce cost to meet customers' budget, while making a profit. Question 3 Part A Presidential also manufactures decorative colored outdoor tiles. It has fixed costs of $749,100. The sales mix, and contribution margin per box of tiles are shown below: Required: a. Based on the current sales mix, compute the weighted average contribution margin per crate. b. Compute the number of each type of coloured stone that the company would need to sell in order to break even under this product mix. Part B Presidential uses flexible budgets to control its selling expenses. Variable costs as a percentage of sales are as follows: Fixed selling expenses consist of sales salaries $80,400 and depreciation on delivery equipment $15,000. The actual selling expenses incurred in February 2019, by Presidential are as follows: Actual fixed selling expenses consist of sales salaries $81,500 and depreciation on delivery equipment $15,000. Required: Assuming that February sales were $640,000, prepare a flexible budget performance report for February. For each item in the report state where applicable, if the difference is Favourable or Unfavourable

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