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Campbell Company manufactures two products. The budgeted per-unit contribution margin for each product follows: Sales price Super $ 91 Supreme $ 126 Variable cost
Campbell Company manufactures two products. The budgeted per-unit contribution margin for each product follows: Sales price Super $ 91 Supreme $ 126 Variable cost per unit (69) (84) Contribution margin per unit $ 22 $ 42 Campbell expects to incur annual fixed costs of $156,000. The relative sales mix of the products is 60 percent for Super and 40 percent for Supreme. Required a. Determine the total number of products (units of Super and Supreme combined) Campbell must sell to break even. b. How many units each of Super and Supreme must Campbell sell to break even? Note: For all requirements, do not round intermediate calculations.
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