Briggs 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 shown below.
(a) What is the weighted-average contribution margin ratio?
(b) If the companyâs fixed costs are $440,000 per year, what is the dollar amount of each type of candle that must be sold to breakeven?