Head-First Company plans to sell 4,700 bicycle helmets at $80 each in the coming year. Unit variable
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Head-First Company plans to sell 4,700 bicycle helmets at $80 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 $48,700 (includes fixed factory overhead and fixed selling and administrative expense).
1. Calculate the number of helmets Head-First must sell to earn operating income of $97,500.
helmets
Required: | |
1. | Calculate the number of helmets Head-First must sell to earn operating income of $97,500. |
2. | Check your answer by preparing a contribution margin income statement based on the number of units calculated. |
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