what is the dollar amount of each type of card that must be sold to break even?

February 14, 2023/in Accounting File 8 /by admin

Kooi Papery makes cards for special occasions. The sales mix (as a percent of total dollar sales) of its three product fines is: birthday cards 40%, thank you cards 35%, and wedding cards 25%. The contribution margin ratio of each card type is shown below:

Card Type

Contribution Margin Ratio

Birthday

20%

Thank you

30%

Wedding

25%

(a) What is the weighted average contribution margin ratio?

(b) If the company"s fixed costs are $297,000 per year: what is the dollar amount of each type of card that must be sold to break even?