Contribution Margin Income Statement

Instructions

Head$-$First Company now sells both bicycle helmets and motorcycle helmets. Next year, Head$-$ First expects to produce total revenue of $$557,000$ and incur total variable cost of $$382,000.$ Total fixed cost is expected to be $$59,900.$

Required:

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.

Check your answer by preparing a contribution margin income statement.