Question
Vaughn Candle Supply makes candles. The sales mix (as a percentage of total dollar sales) of its three product lines is birthday candles30%, standard tapered
Vaughn Candle Supply makes candles. The sales mix (as a percentage of total dollar sales) of its three product lines is birthday candles30%, standard tapered candles55%, and large scented candles15%. The contribution margin ratio of each candle type is shown below.
Candle Type
Contribution Margin Ratio
Birthday20% Standard tapered30% Large scented50%
What is the weighted-average contribution margin ratio?
If the company's fixed costs are $406,500per 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
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