Question
Break-Even Sales Dollars for a Multiple-Product Firm Head-First Company now sells both bicycle helmets and motorcycle helmets. Next year, Head-First expects to produce total revenue
Break-Even Sales Dollars for a Multiple-Product Firm
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. (In your calculations, round the contribution margin ratio to four decimal places. Round your final answer to the nearest dollar.) $
2. Check your answer by preparing a contribution margin income statement. If an amount is zero, enter "0". (Round calculations to four decimal places, and final answers to the nearest dollar.)
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