Head$-$First Company plans to sell $5,000$ bicycle helmets at $$70$ each in the coming year. Product costs

include:

Direct materials per helmet $.....................................$ $ $30$

Direct labour per helmet $..........................................$ $ $5$

Variable overhead per helmet $.................................$ $ $12$

Total fixed factory overhead $....................................$ $ $14,000$

$($The relevant range of production is $4,000$ units to $6,000$ units.$)$

Variable selling expense is a commission of $$2$ per helmet; fixed selling and administrative expense

totals $$15,400.$

Requirements:

$($For each of the following independent situations, always go back to the original question data to

answer the requirement.$)$

$1.($a$)$ Calculate the total variable cost per unit.

$($b$)$ Calculate the total fixed expense for the year.

$2.$ Prepare a contribution margin income statement for Head$-$First Company for the coming year.

$3.$ Calculate the break$-$even point in both number of helmets and sales dollars.

$4.$ Prepare a contribution margin income statement for Head$-$First Company at the break$-$even point.

$5.($a$)$ Calculate the variable cost ratio.

$($b$)$ Calculate the contribution margin ratio