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Cakes by Jacki has $144,000 of fixed costs per year. The contribution margin ratio is 59%. The sales dollars to break-even ro
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Answer #1

Answer is $244,068

Fixed Costs = $144,000
Contribution Margin Ratio = 59%

Breakeven Point in Sales Dollars = Fixed Costs / Contribution Margin Ratio
Breakeven Point in Sales Dollars = $144,000 / 0.59
Breakeven Point in Sales Dollars = $244,068

So, the sales dollars to break-even is $244,068

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