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 40% of its sales (in units) to be Product X and 60% to be Product Y (a sales mix of 4:6).

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

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

Question 1: CVP Time: 25 minutes Total: 20 marks Jonah Hill Company manufactures two products. Information about the two products is as follows: Product Product Selling price per unit 530 Variable costs per unit 120 Contribution margin per units S10 The company expects fixed costs to be $185,000. The firm expects 40% of its sales (in units) to be Product X and 60% to be Product Y a sales mix of 4:6). 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 level of sales (in dollars) necessary to generate operating income of $185,000 (6 marks) d. Identify and explain 3 separate ways in which the company can use the above information to improve overall profitability