Blossom 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 50%, and large scented candles 25%. The contribution margin ratio of each candle type is as follows: Candle Type Contribution Margin Ratio Birthday 10% Standard tapered Large scented 30% 40% If the company's fixed costs are $488,400 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.) Birthday: Standard tapered: $ Large scented: $ Break-even in sales
Blossom 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 50%, and large scented candles 25%. The contribution margin ratio of each candle type is as follows: Candle Type Contribution Margin Ratio Birthday 10% Standard tapered Large scented 30% 40% If the company's fixed costs are $488,400 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.) Birthday: Standard tapered: $ Large scented: $ Break-even in sales
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Blossom 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 50%, and large scented candles 25%. The contribution margin ratio of each candle type is as
follows:
Candle Type
Contribution Margin Ratio
Birthday
10%
Standard tapered
Large scented
30%
40%
If the company's fixed costs are $488,400 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.)
Birthday:
Standard tapered:
$
Large scented:
$
Break-even in sales
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