Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Head-First Company plans to sell 4,700 bicycle helmets at $75 each in the coming year. Unit variable cost is $46 (includes direct materials, direct labor,
Head-First Company plans to sell 4,700 bicycle helmets at $75 each in the coming year. Unit variable cost is $46 (includes direct materials, direct labor, variable factory overhead, and variable selling expense). Total fixed cost equals $46,110 (includes fixed factory overhead and fixed selling and administrative expense).
Required: | |
1. | Calculate the break-even number of helmets. |
2. | Check your answer by preparing a contribution margin income statement based on the break-even units. |
Refer to the list below for the exact wording of an amount description within your income statement.
Amount Descriptions | |
Operating income | |
Operating loss | |
Sales | |
Total contribution margin | |
Total fixed cost | |
Total variable cost |
1. Calculate the break-even number of helmets.
_______________helmets
Contribution Margin Income Statement 2. Check your answer by preparing a contribution margin income statement based on the break-even units. Refer to the list of Amount Descriptions for the exact wording of text items within your income statement. If there is an operating loss, enter the amount as a negative number using a minus sign Head-First Company Contribution Margin Income Statement At Break-Even Point 1 2 3 4 5Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started