Question
Cullumber Candle Supply makes candles. The sales mix (as a percentage of total dollar sales) of its three product lines is birthday candles 30%, standard
Cullumber 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 40%, and large scented candles 30%. The contribution margin ratio of each candle type is as follows:
Candle Type | Contribution Margin Ratio | |||
---|---|---|---|---|
Birthday | 20% | |||
Standard tapered | 25% | |||
Large scented | 50% |
If the companys fixed costs are $547,770 per year, what is the dollar amount of each type of candle that must be sold to break even? (Round weighted-average contribution margin ratio to 2 decimal places, e.g. 15.25% and final answer to 0 decimal places, e.g. 1,545.)
Break-even in sales | |||
---|---|---|---|
Birthday: | $enter a dollar amount | ||
Standard tapered: | $enter a dollar amount | ||
Large scented: | $enter a dollar amount |
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