BREAK-EVEN POINT IN UNITS Head-First Company plans to sell 5,000 bicycle helmets at $70 each in the coming year.

Unit variable cost is $49 (includes direct materials, direct labor, variable overhead, and variable selling expense). Total fixed cost equals $29,400 (includes fixed factory overhead and fixed selling and administrative expense).

Required:

. Calculate the break-even number of helmets.

. Check your answer by preparing a contribution margin income statement based on the break-even units.

Cornerstone Exercise