Reference no: EM132607755

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 90% of its sales (in units) to be Product X and 10% to be Product Y (a sales mix of 9:1).

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