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Break-Even Point in Sales Dollars Instructions Amount Descriptions Sales Revenue Instructions Head-First Company plans to sell 4,400 bicycle helmets at $72 each in the
Break-Even Point in Sales Dollars Instructions Amount Descriptions Sales Revenue Instructions Head-First Company plans to sell 4,400 bicycle helmets at $72 each in the coming year. Variable cost is 56% of the sales price; contribution margin is 44% of the sales price. Total fixed cost equals $54,560 (includes fixed factory overhead and fixed selling and administrative expense). Required: 1. Calculate the sales revenue that Head-First must make to break even by using the break-even point in sales equation. 2. Check your answer by preparing a contribution margin income statement based on the break-even point in sales dollars.
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