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Question
Presto Candle Supply makes candles. The sales mix (as a percentage of total dollar sales) of its three product lines is birthday candles 25%, standard tapered candles 50%, and large scented candles 25%. The contribution margin ratio of each candle type is as follows:
Candle Type
Contribution Margin Ratio
Birthday20%
Standard tapered25%
Large scented50%
If the company's fixed costs are $528,300 per year, what is the dollar amount of each type of candle that must be sold to break even? (Round weighted-average contribution margin ratio to 2 decimal places, e.g. 15.25%.)
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