Head-First Company plans to sell 4,400 bicycle helmets at $72 each in the coming year. Variable cost is 56% of the sales price; contribution margin is 44% of the sales price. Total fixed cost equals $54,560 (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.Prepare a contribution margin income statement based on the break-even point in sales dollars.