Question
Head-First Company plans to sell 5,800 bicycle helmets at $67 each in the coming year. Unit variable cost is $44 (includes direct materials, direct labor,
Head-First Company plans to sell 5,800 bicycle helmets at $67 each in the coming year. Unit variable cost is $44 (includes direct materials, direct labor, variable factory overhead, and variable selling expense). Total fixed cost equals $40,710 (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____________
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.
Question not attempted.
Score: 0/51
Head-First Company |
Contribution Margin Income Statement |
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