Crane Candle Supply makes candles. The sales mix (as a percentage of total dollar sales) of its three product lines is birthday candle 25%, standard tapered candles 40%, and large scented candles 35%. The contribution margin ratio of each candle type is as follows: Candle Type Birthday Standard tapered Large scented Birthday: Standard tapered: Contribution Margin Ratio Large scented: If the company's fixed costs are $497,765 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 O decimal places, e.g. 1,545.) 10% $ 25% 45% Break-even in sales
Crane Candle Supply makes candles. The sales mix (as a percentage of total dollar sales) of its three product lines is birthday candle 25%, standard tapered candles 40%, and large scented candles 35%. The contribution margin ratio of each candle type is as follows: Candle Type Birthday Standard tapered Large scented Birthday: Standard tapered: Contribution Margin Ratio Large scented: If the company's fixed costs are $497,765 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 O decimal places, e.g. 1,545.) 10% $ 25% 45% Break-even in sales
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
22.
Subject :- Accounting
Transcribed Image Text:Crane 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
Birthday
Standard tapered
Large scented
Birthday:
Standard tapered:
Contribution Margin Ratio
Large scented:
If the company's fixed costs are $497,765 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 O decimal places, e.g. 1,545.)
10%
$
25%
45%
Break-even in sales
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education