Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Wildhorse Candle Supply makes candles. The sales mix (as a percentage of total dollar sales) of its three product lines is birthday candles 30%, standard
Wildhorse 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 40%, and large scented candles 30%. The contribution margin ratio of each candle type is as follows:
Candle Type | Contribution Margin Ratio | |||
---|---|---|---|---|
Birthday | 10% | |||
Standard tapered | 20% | |||
Large scented | 50% |
If the companys fixed costs are $458,900 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.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started