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Presto Candle Supply makes candles. The sales mix (as a percentage of total dollar sales) of its three product lines is birthday candles 25%, standard
Presto Candle Supply makes candles. The sales mix (as a percentage of total dollar sales) of its three product lines is birthday candles 25%, standard tapered candles 40%, and large scented candles 35%. The contribution margin ratio of each candle type is as follows:
Candle Type | Contribution Margin Ratio | |||
Birthday | 10% | |||
Standard tapered | 20% | |||
Large scented | 40% |
If the companys fixed costs are $428,750 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%.)
Break-even in sales | |||
Birthday: | $ | ||
Standard tapered: | $ | ||
Large scented: | $ |
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