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 80% of its sales (in units) to be Product X and 20% to be Product Y (a sales mix of 8:2).

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

(4 marks)

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

3. Determine the level of sales (in dollars) necessary to generate operating income of $185,000 (6 marks)

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