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Presto Candle Supply makes candles. The sales mix (as a percent 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 as follows. Candle Type Contribution Margin Ratio
Birthday 10% Standard tapered 20% Large scented 45%
What is the weighted-average contribution margin ratio? (Round answer to 3 decimal places, e.g. 2.250.)
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There were no differences between accounting income and taxable income other than those described above. Prepare the appropriate journal entry to record Gallo Light's 2011 income taxes. Show calculations. Explain h ow should the deferred tax amount..
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