Head-First Company plans to sell 5,100 bicycle helmets at $78 each in the coming year. Variable cost is 58% of the sales price; contribution margin is 42% of the sales price. Total fixed cost equals $51,240 (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.

Refer to the list below for the exact wording of text items within your income statement.

Amount Descriptions
Operating income
Operating loss
Sales
Total contribution margin
Total fixed cost
Total variable cost

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. Refer to the list of Amount Descriptions for the exact wording of text items within your income statement Head-First Company Contribution Margin Income Statement At Break-Even Point 1 2 3 4 5