Using Excel to Compute Multiple Product Break$-$Even Points

PROBLEM

Dixie Candle Supply makes candles. The sales mix $($as a percentage

of total dollar sales$)$ and the contribution margin ratios of its three

product lines, and its total fixed costs follow.

Student Work Area

Required: Provide input into cells shaded in yellow in this template. Use

mathematical formulas with cell references to the Problem area or work

area as indicated.

a$.$ What is the weighted$-$average contribution margin ratio?

Weighted$-$average contribution margin ratio

b$.$ What is the sales dollar amount of each type of candle that must

be sold to break even?

Break$-$even points in sales dollars

Total

$ $,1,500,000$

Birthday candles

$$,450,000$

Standard tapered candles

Large scented candles