Reference no: EM132540068
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 45 15
Contribution margin per unit $35 $15
The company expects fixed costs to be $189,000. The firm expects 60% of its sales (in units) to be Product X and 40% to be Product Y (a sales mix of 3:2).
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 $135,000
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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