Calloway Corporation sells three products: A, B, and C. Calloway estimates that it sells three A's for
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Calloway Corporation sells three products: A, B, and C. Calloway estimates that it sells three A's for every two B's and every one C (3:2:1). The budgeted cost information for Calloway's products are as follows:
A | B | C | |
Selling Price per unit | $2.50 | $3.75 | $3.00 |
Materials per unit | $0.25 | $0.50 | $0.35 |
Labor per unit | $0.50 | $1.00 | $0.30 |
Packaging cost per unit | $0.50 | $0.25 | $0.10 |
Additionally, there are two fixed costs: Rent at $5,000 and Marketing at $2,000.
1. At the 3:2:1 sales mix, what is the contribution margin per bundle (package, composite unit)? $/bundle
2.abc. At the 3:2:1 sales mix, how many of each product does Calloway need to sell to break even? units; units; and units.
Related Book For
Fundamentals of Physics
ISBN: 978-0471758013
8th Extended edition
Authors: Jearl Walker, Halliday Resnick
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