Dixie 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 60%, and large scented candles 10%. The contribution margin ratio of each candle type is shown below. Candle Type Contribution Margin Ratio Birthday 20% Standard tapered 35% Large scented 40% If the company’s fixed costs are $554,880 per year, what is the dollar amount of each type of candle that must be sold to break even? If the company’s fixed costs are $554,880 per 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
Dixie 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 60%, and large scented candles 10%. The contribution margin ratio of each candle type is shown below. Candle Type Contribution Margin Ratio Birthday 20% Standard tapered 35% Large scented 40% If the company’s fixed costs are $554,880 per year, what is the dollar amount of each type of candle that must be sold to break even? If the company’s fixed costs are $554,880 per 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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Dixie 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 60%, and large scented candles 10%. The contribution margin ratio of each candle type is shown below.
|
Candle Type |
Contribution Margin Ratio |
|
|---|---|---|
| Birthday | 20% | |
| Standard tapered | 35% | |
| Large scented | 40% |
If the company’s fixed costs are $554,880 per year, what is the dollar amount of each type of candle that must be sold to break even?
If the company’s fixed costs are $554,880 per 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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