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 (61.25% is not being taken as the right answer)

Break-Even in Sales Dollars $149,388