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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

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

  1. Determine the breakeven point in total units, and how much would come from products X and Y

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

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

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