Collapse question part (b) If the company’s fixed costs are $457,500 per year, w
ID: 2595314 • Letter: C
Question
Collapse question part (b) If the company’s fixed costs are $457,500 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 $ $ $
Brief Exercise 19-9 (Part Level Submission) 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 5596, and large scented candles 1596, The contribution margin ratio of each candle type is shown below Candle Type Birthday Standard tapered Large scented Contribution Margin Ratio 20% 30% 50% Your answer is correct. What is the weighted-average contribution margin ratio? (Round answer to 0 decimal places, e.g. 15. Weighted-average contribution margin ratio Click if you would lik to Show work for this question: Open Show Work ENK TO TEXT By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor. Attempts: 1 of 5 used If the company's fixed costs are $457,500 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 Click if you would like to Show Work for this question: Open Show Work By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor Attemptst O of S used SAVE FOR LATER
Explanation / Answer
Ans. Birthday Standard taperred Large scented TOTAL Total Break even point: 442741.8 811693.3 221370.9 1475806 Total Break even point = Fixed cost / Weighted average contribution ratio 457500 / 31% 1475806.452 OR 1475806 Break even point : Birthday 1475806 * 30% 442741.8 Standard taperred 1475806 * 55% 811693.3 Large scented 1475806 * 15% 221370.9