Head-First Company plans to sell 4,200 bicycle helmets at $67 each in the coming year. Variable cost is 66% of the sales price; contribution margin is 34% of the sales price. Total fixed cost equals $42,585 (includes fixed factory overhead and fixed selling and administrative expense).

Required: 1. Calculate the sales revenue that Head-First must make to break even by using the break-even point in sales equation.

2. Check your answer by preparing a contribution margin income statement based on the break-even point in sales dollars.