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Dixie Candle Supply makes candles. The sales mix (as a percentage of total dollar sales) of its three product lines is birthday candles 30%, standard
Dixie 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 60%, and large scented candles 10%. The contribution margin ratio of each candle type is shown below.
Candle Type | Contribution Margin Ratio |
Birthday | 20% |
Standard tapered | 35% |
Large scented | 40% |
1. What is the weighted - average contribution margin ratio? (%)
2. If the company's fixed costs are $536,610 per year, what is the dollar amount of each type of candle that must be sold to break even?
Birthday: $ ?
Standard tapered: $ ?
Large scented: $ ?
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