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Alicia Company manufactures two products. Information about the two products is as follows: Selling price per unit Variable costs per unit Product X $80 $35
Alicia Company manufactures two products. Information about the two products is as follows: Selling price per unit Variable costs per unit Product X $80 $35 Product Y $20 $15 The company expects fixed costs to be $198,000. The firm expects 70% of its sales (in units) to be Product X and 30% to be Product Y. a. Calculate the weighted average contribution margin or contribution margin by package b. Determine the breakeven point in total units, and how much would come from products X and Y C C Determine the level of sales (in dollars) necessary to generate operating income of $135,000 d. Identify and explain 3 separate ways in which the company can use the above information to improve overall profitability
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