Question
Campbell Company manufactures two products. The budgeted per-unit contribution margin for each product follows: Sales price $ 94 $ 124 Variable cost per unit (57)
Campbell Company manufactures two products. The budgeted per-unit contribution margin for each product follows:
| Sales price | $ | 94 | $ | 124 | ||||
| Variable cost per unit | (57) | (85) | ||||||
| Contribution margin per unit | $ | 37 | $ | 39 | ||||
Campbell expects to incur annual fixed costs of $214,320. The relative sales mix of the products is 70 percent for Super and 30 percent for Supreme.
Required
Determine the total number of products (units of Super and Supreme combined) Campbell must sell to break even.
How many units each of Super and Supreme must Campbell sell to break even?
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Bed And Breakfast IRS Audit Techniques Guide
Authors: Internal Revenue Service
1st Edition
1304131793, 978-1304131799
