Q1. (25 marks)

CSV Company manufactures two products. Information about the two products is as follows:

Product X

Product Y

Selling price per unit

$90

$50

Variable costs per unit

$40

$20

The company expects fixed costs to be $252,000. The firm expects 60% of its sales (in units) to be Product X and 40% to be Product Y.

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

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

c. Determine the level of sales (in dollars) necessary to generate operating income of $135,000

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