Sunland 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 55%, and large scented candles 15%. The contribution margin ratio of each candle type is shown below.

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter11: Differential Analysis And Product Pricing
Section: Chapter Questions
Problem 16E
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If the company's fixed costs are $395,400 per year, what is the sales dollar amount of each type of candle that must be sold to
break even?
Product line break-even point $
Birthday
Standard tapered
Large scented
Transcribed Image Text:If the company's fixed costs are $395,400 per year, what is the sales dollar amount of each type of candle that must be sold to break even? Product line break-even point $ Birthday Standard tapered Large scented
Sunland 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 55%, and large scented candles 15%. The contribution margin ratio of each candle type is
shown below.
Candle Type
Birthday
Standard tapered
Large scented
Contribution Margin Ratio
20%
30%
50%
What is the weighted-average contribution margin ratio?
Weighted average contribution margin ratio
%
Transcribed Image Text:Sunland 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 55%, and large scented candles 15%. The contribution margin ratio of each candle type is shown below. Candle Type Birthday Standard tapered Large scented Contribution Margin Ratio 20% 30% 50% What is the weighted-average contribution margin ratio? Weighted average contribution margin ratio %
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