Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Sheridan Candle Supply makes candles. The sales mix (as a percentage of total dollar sales) of its three product lines is birthday candles 25%, standard

image text in transcribed

Sheridan 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 15% Standard tapered 35% Large scented 45% If the company's fixed costs are $599,650 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: $ 89947.5 Standard tapered: $ 209877.5 Large scented: $ 269842.5

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

Recommended Textbook for

Sound Investing, Chapter 6 - Valuation Of Assets And Liabilities

Authors: Kate Mooney

1st Edition

0071719288, 9780071719285

More Books

Students also viewed these Accounting questions