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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

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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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