Presto Candle Supply makes candles. The sales mix (as a percent of total dollar sales) of its

Question:

Presto Candle Supply makes candles. The sales mix (as a percent of total dollar sales) of its three product lines is: birthday candles 30%, standard tapered candles 50%, and large scented candles 20%. The ratio of each candle type is shown below.
Candle Type Ratio
Birthday ................ 10%
Standard tapered ............ 20%
Large scented ............... 45%
(a) What is the weighted-average ratio?
(b) If the company’s fixed costs are $440,000 per year, what is the dollar amount of each type of candle that must be sold to break even?

Contribution Margin
Contribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes...