Sheridan 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 50%, and large scented candles 20%. The contribution margin ratio of each candle type is shown below. Candle Type Birthday Standard tapered Large scented Contribution Margin Ratio 20% 30% 45%
Sheridan 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 50%, and large scented candles 20%. The contribution margin ratio of each candle type is shown below. Candle Type Birthday Standard tapered Large scented Contribution Margin Ratio 20% 30% 45%
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Sheridan 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 50%, and large scented candles 20%. The contribution margin ratio of each candle type is
shown below.
Candle Type
Birthday
Standard tapered
Large scented
(a)
Contribution Margin Ratio
20%
30%
45%
What is the weighted-average contribution margin ratio?
Weighted-average contribution margin ratio
4
%
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