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 $185,880. 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).

a. Calculate the weighted average contribution margin or contribution margin by package

(4 marks)

b. Determine the breakeven point in total units, and how much would come from products X and Y (7 marks)

c. Determine the minimum level of sales (in dollars) necessary to generate operating income of $184,980 (6 marks)

d. Identify and explain 3 separate ways in which the company can use the above information to improve overall profitability. (3 marks)

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 $185,880. 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).

a. Calculate the weighted average contribution margin or contribution margin by package

(4 marks)

b. Determine the breakeven point in total units, and how much would come from products X and Y (7 marks)

c. Determine the minimum level of sales (in dollars) necessary to generate operating income of $184,980 (6 marks)

d. Identify and explain 3 separate ways in which the company can use the above information to improve overall profitability. (3 marks)