Dixie Candle Supply makes candles The sales mix as a

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Dixie Candle Supply makes candles The sales mix as a

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 50%, and large scented
candles 20%. The contribution margin ratio of each candle type is shown below.

Candle Type Contribution Margin Ratio

Birthday......................... 20%

Standard tapered............... 30%

Large scented.................. 45%

(a) What is the weighted - average contribution margin ratio?

(b) if the company's fixed cost are $450,000 per year, what is the dollar amount of each type of
candle that must be sold to break even?

Dixie Candle Supply makes candles The sales mix as a

ANSWER
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