Reference no: EM132540518
Jonah Hill Company manufactures two products. Information about the two products is as follows:
Product X Product Y
Selling price per unit $80 $30
Variable costs per unit 40 20
Contribution margin per unit $40 $10
The company expects fixed costs to be $185,000. The firm expects 70% of its sales (in units) to be Product X and 30% to be Product Y (a sales mix of 7:3).
Question a. Calculate the weighted average contribution margin or contribution margin by package
Question b. Determine the breakeven point in total units, and how much would come from products X and Y
Question c. Determine the level of sales (in dollars) necessary to generate operating income of $185,000
Question d. Identify and explain 3 separate ways in which the company can use the above information to improve overall profitability.
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