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Question 1: CVP Time: 25 minutes Total: 20 marks Jonah Hill Company manufactures two products. Information about the two prod

b. Determine the breakeven point in total units, and how much would come from products X and Y (6 marks)

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Answer #1

a. Weighted average contribution margin = (Unit contribution margin of product X * sales mix + unit contribution margin of Product Y * sales mix)

= ($35 * 0.60 + $15 * 0.40)

= $21 + $6

= $27

b.

Break even point in total units = Fixed costs / weighted average contribution margin

= $189,000 / $27

= 7,000 units

Product X = 7,000 * 0.60

= 4,200

Product Y = 7,000 * 0.40

= 2,800 units

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