Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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.)

Product A

Product B

Contribution margin per unit of limited resource

$enter a dollar amount rounded to 2 decimal places

$enter a dollar amount rounded to 2 decimal places

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

Students also viewed these Accounting questions

Question

What does the Foa & Foa Model illustrate?

Answered: 1 week ago