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Y1&Y2manufactures two products. Information about the two products is as follows: ProductY1 ProductY2 Selling sales $70 $25 price per unit 45 15 Contribution margin per

Y1&Y2manufactures two products. Information about the two products is as follows:

ProductY1 ProductY2

Selling sales $70 $25

price per unit 45 15

Contribution margin per unit $25 $1

Y1&Y2expects fixed costs to be $199,000. The firm expects 60% of its sales (in units) to be ProductY1and 40% of Y2(a sales mixpackageof 3units ofY1:2units of Y2).

Required:Round to the nearest full unit.

  1. Calculate the contribution margin per package of 3 ProductsY1's and 2 ProductY2's.5 Marks
  2. Determine the break-even point in units for ProductsY1andY2.5 Marks
  3. Determine the level of sales (in dollars) necessary to generate operating income of $135,000.5 Marks

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