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Break-Even Point in Units for a Multiple-Product Firm Instructions Amount Descriptions Instructions Sales Mix and Break-Even Point Contribution Margin Income Statement Suppose that Head-First

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Break-Even Point in Units for a Multiple-Product Firm Instructions Amount Descriptions Instructions Sales Mix and Break-Even Point Contribution Margin Income Statement Suppose that Head-First Company now sells both bicycle helmets and motorcycle helmets. The bicycle helmets are priced at $77 and have variable costs of $45 each. The motorcycle helmets are priced at $230 and have variable costs of $135 each. Total fixed cost for Head- First as a whole equals $66,500 (includes all fixed factory overhead and fixed selling and administrative expense). Next year, Head-First expects to sell 5,200 bicycle helmets and 2,000 motorcycle helmets. Required: 1. Form a package of bicycle and motorcycle helmets based on the sales mix expected for the coming year. 2. Calculate the break-even point in units for bicycle helmets and for motorcycle helmets. 3. Check your answer by preparing a contribution margin income statement.

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