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 Don't use plagiarized sources. Get Your Custom Essay on what is the dollar amount of each type of card that must be sold to break even 608985 Get an essay WRITTEN FOR YOU, Plagiarism free, and by an EXPERT! Just from $10/Page | 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?
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