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.

Answer rating: 100% (QA)

1 The contribution margin per bundle is 1000 2 4200 un... View the full answer