Reference no: EM132610454

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 1: Calculate the weighted average contribution margin or contribution margin by package

Question 2: Determine the breakeven point in total units, and how much would come from products X and Y

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

Question 4: Identify and explain 3 separate ways in which the company can use the above information to improve overall profitability