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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
$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.
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