Calculate the contribution margin per package of products

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Reference no: EM132834987

Question - Y1 & Y2 manufactures two products. Information about the two products is as follows:

 

Product Y1

Product Y2

Selling sales

$70

$25

Price per unit

45

15

Contribution margin per unit

$25

$1

Y1 & Y2 expects fixed costs to be $199,000. The firm expects 60% of its sales (in units) to be Product Y1 and 40% of Y2 (a sales mix package of 3units of Y1: 2 units of Y2).

Required - Round to the nearest full unit.

1. Calculate the contribution margin per package of 3 Products Y1's and 2 Product Y2's.

2. Determine the break-even point in units for Products Y1 and Y2.

3. Determine the level of sales (in dollars) necessary to generate operating income of $135,000.

Reference no: EM132834987

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