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).

	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.

Contribution Margin Income Statement Head-First Company Contribution Margin Income Statement Based on Helmets Sold 1 2 3 4 5