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.

Break-Even Sales Dollars for a Multiple-Product Firm Instructions Amount Descriptions Break-Even Sales Dollars ! Contribution Margin Income Statement Instructions 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. Round the contribution margin ratio to four decimal places and sales to the nearest dollar. 2. Check your answer by preparing a contribution margin income statement. Break-Even Sales Dollars for a Multiple-Product Firm Instructions Amount Descriptions Break-Even Sales Dollars ! Contribution Margin Income Statement Instructions Break-Even Sales Dollars 1. Calculate the break-even point in sales dollars for Head-First. Round the contribution margin ratio to four decimal places and sales to the nearest dollar. The break-even point in sales equals $ Points: 0/1 E O X Shaded cells have feedback. X Break-Even Sales Dollars for a Multiple-Product Firm Instructions Amount Descriptions! Break-Even Sales Dollars Contribution Margin Income Statement Contribution Margin Income Statement Question not attempted. 2. Check your answer by preparing a contribution margin income statement. Refer to the list of Amount Descriptions for the exact wording of text items within your income statement. 1 2 3 4 5 Feedback Check My Work Head-First Company Contribution Margin Income Statement At Break-Even Sales Dollars Score: 0/51 Amount Descriptions A Amount Descriptions Operating income Operating loss Shaded cells have feedback. X Refer to the list below for the exact wording of text items within your income statement. Sales Total contribution margin Total fixed cost Total variable cost