Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Blossom Candle Supply makes candles. The sales mix (as a percentage of total dollar sales) of its three product lines is birthday candles 30%, standard

image text in transcribedimage text in transcribed

Blossom Candle Supply makes candles. The sales mix (as a percentage of total dollar sales) of its three product lines is birthday candles 30%, standard tapered candles 55%, and large scented candles 15%. The contribution margin ratio of each candle type is shown below. Candle Type Contribution Margin Ratio Birthday 20% Standard tapered 30% Large scented 50% (a) Your answer is correct. What is the weighted average contribution margin ratio? Weighted average contribution margin ratio 30 % (b) X Your answer is incorrect. If the company's fixed costs are $406,500 per year, what is the sales dollar amount of each type of candle that must be sold to break even? Birthday Standard tapered Large scented Product line break-even point $ 3,658,500 $ 6,707,250 $ 1,829,250 e Textbook and Media Save for Later Attempts: 1 of 2 used Submit

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Interpreting Company Reports And Accounts

Authors: Geoffrey Holmes, Alan Sugden, Paul Gee

10th Edition

0273711415, 9780273711414

More Books

Students also viewed these Accounting questions

Question

Why do most plastics contain amorphous and crystalline regions?

Answered: 1 week ago

Question

3. How old are they? (children, teens, adults, seniors)

Answered: 1 week ago

Question

4. Where do they live? (city or town, state, country)

Answered: 1 week ago