Reference no: EM132282303

Questions -

Q1) NoFly Corporation sells three different models of a mosquito "zapper." Model A12 sells for $53 and has variable costs of $45. Model B22 sells for $101 and has variable costs of $74. Model C124 sells for $417 and has variable costs of $305. The sales mix of the three models is A12, 57%; B22, 27%; and C124, 16%.

If the company has fixed costs of $203,329, how many units of each model must the company sell in order to break even?

Q2) 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 50%, and large scented candles 20%. The contribution margin ratio of each candle type is shown below.

Candle Type Contribution Margin Ratio

Birthday 20%

Standard tapered 30%

Large scented 40%

What is the weighted-average contribution margin ratio?

If the company's fixed costs are $450,080 per year, what is the dollar amount of each type of candle that must be sold to break even?