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Jonah Hill Company manufactures two products. Information about the two products is as follows: Product X Product Y 40 Selling price per unit $80 $30
Jonah Hill Company manufactures two products. Information about the two products is as follows: Product X Product Y 40 Selling price per unit $80 $30 Variable costs per unit 20 Contribution margin per unit $40 $10 The company expects fixed costs to be $185,000. 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). Calculate the weighted average contribution margin or contribution margin by package (4 marks) a. 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
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