Briggs Candle Supply makes candles. The sales mix 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 as follows.
|
Candle Type
|
Contribution Margin Ratio
|
|
Birthday |
10% |
|
|
Standard tapered |
30% |
|
|
Large scented |
50% |
|
| (a) |
What is the weighted-average contribution margin ratio? |
|
|
|
 |
| (b) |
If the company's fixed costs are $455,840 per year, what is the dollar amount of each type of candle that must be sold to break even? |
| Birthday |
$ |
| Standard tapered |
$ |
| Large scented |
$ |