1. Jonah Hill Company manufactures two products. Information about the two products is as follows:

Product X Product Y

Selling price per unit $30 $80

Variable costs per unit 15 45

Contribution margin per unit $15 $35

1.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).

Required:

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. 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.

2.

Master Budgeting

Camera Crawlers manufactures picture frames. Sales for December are expected to be 10,000 units of various sizes. Historically, the average frame requires four meters of framing, one square meter of glass, and two square meters of backing. Beginning inventory includes 1,500 meter of framing, 500 square meters of glass, and 500 square meters of backing. Current prices are $0.30 per meter of framing, $6.00 per square meter of glass, and $2.25 per square meter of backing. Ending inventory should be 150% of beginning inventory. Purchases are paid for in the month acquired.

Required:

a. Determine the quantity of framing, glass, and backing that is to be purchased during December.

b. Determine the total costs of direct materials for December purchases.

Job Costing

Answer each of the following questions:

List the steps in estimating a cost function using quantitative analysis

What are the cost estimation methods used by companies (only list) ?

What are the assumptions that managers make to estimate the cost functions