Question
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 30% Large scented 40% What is the weighted-average contribution margin ratio? (Round answer to 0 decimal places, e.g. 15.) Weighted-average contribution margin ratio enter the weighted-average contribution margin ratio in percentages % eTextbook and Media If the companys fixed costs are $423,640 per year, what is the dollar amount of each type of candle that must be sold to break even? Birthday Standard tapered Large scented Total break-even point $enter a dollar amount $enter a dollar amount $enter a dollar amount
2.
Faune Furniture Co. consists of two divisions, Bedroom Division and Dining Room Division. The results of operations for the most recent quarter are:
Bedroom Division | Dining Room Division | Total | ||||
---|---|---|---|---|---|---|
Sales | $501,000 | $770,000 | $1,271,000 | |||
Variable costs | 229,000 | 450,000 | 679,000 | |||
Contribution margin | $272,000 | $320,000 | $ 592,000 |
(a) Determine the companys sales mix. (Round answers to 2 decimal places, e.g. 0.15.)
Sales mix | ||
---|---|---|
Bedroom Division | enter a share of the division rounded to 2 decimal places | |
Dining Room Division | enter a share of the division rounded to 2 decimal places |
(b) Determine the companys weighted-average contribution margin ratio. (Round intermediate calculation and final answer to 2 decimal places, e.g. 0.15.)
Weighted-average contribution margin ratio In Marshall Company, data concerning two products are unit contribution marginProduct A $14, Product B $12; machine hours required for one unitProduct A 2, Product B 3. Compute the contribution margin per unit of limited resource for each product. (Round answers to 2 decimal places, e.g. 0.15.)
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