Break-Even Sales Dollars for a Multiple-Product Firm

Chillmax Company now sells both pairs of shoes and carryalls. Next year, Chillmax expects to produce total revenue of $210,000 and incur total variable cost of $81,375. Total fixed cost is expected to be $91,500.

Required:

1.Calculate the break-even point in sales dollars for Chillmax.Note: Round the contribution margin ratio to four decimal places and sales to the nearest dollar.

Contribution Margin Ratio

Break-Even in Sales Dollars $

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2.Check your answer by preparing a contribution margin income statement. Enter all amount as positive numbers.

Chillmax CompanyContribution Margin Income StatementAt Break-Even in Sales DollarsTotalSales$Total variable costTotal contribution margin$Total fixed costOperating income$