Head-First Company now sells both bicycle helmets and motorcycle helmets. Next year, Head- First expects to produce

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Head-First Company now sells both bicycle helmets and motorcycle helmets. Next year, Head-
First expects to produce total revenue of $570,000 and incur total variable cost of $388,000.
Total fixed cost is expected to be $58,900.

Required:
1. Calculate the break-even point in sales dollars for Head-First. (Note: Round the contribution margin ratio to four decimal places.)
2. Check your answer by preparing a contribution margin income statement. Contribution Margin
Contribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes...
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Related Book For  book-img-for-question

Cornerstones of Financial and Managerial Accounting

ISBN: 978-1111879044

2nd edition

Authors: Rich, Jeff Jones, Dan Heitger, Maryanne Mowen, Don Hansen

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