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.

1. The break even point in sales equals 184466

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. PLEASE SOLVE FOR SALES, TOTAL VARIBALE COST, AND CONTRIBUTION MARGIN

Head-First Company

Contribution Margin Income Statement

At Break-Even Sales Dollars

1. Sales = ?
2. total variable cost = ?
3. total contribution margin = ?
4. total fixed cost equals 58,900
5. operating income equals $0

SALES DOES NOT EQUAL 184166.02

TOTAL VARIBALE COST DOES NOT EQUAL 125566.01

TOTAL CONTRIBUTION MARGIN DOES NOT EQUAL 58900