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Ruth Lewis owns and operates SunlandCakes, a bakery that creates personalized birthday cakes for a child's first birthday. The cakes, which sell for $40

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Ruth Lewis owns and operates SunlandCakes, a bakery that creates personalized birthday cakes for a child's first birthday. The cakes, which sell for $40 and feature an edible picture of the child, are shipped throughout the country. A typical month's results are as follows: Sales revenue $832,000 Variable expenses 624,000 Contribution margin 208,000 Fixed expenses 114,000 Operating income $94,000

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