Instructions 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. Amount Descriptions 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 hs Unit Break-Even Point 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. Head-First Company Contribution Margin Income Statement At Break-Even Point 1 Head-First Company Contribution Margin Income Statement At Break-Even Point 2 4 u Instructions Head-First Company plans to sell 4,700 bicycle helmets at $75 each in the coming year. Variable cost is 64% of the sales price; contribution margin is 36% of the sales price. Total fixed cost equals 545,090 (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. Amount Descriptions x 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 Sales Revenue 1. Calculate the sales revenue that Head-First must make to break even by using the break-even point in sales equation. Contribution Margin Income Statement 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 2 3 Contribution Margin Income Statement Head-First Company Contribution Margin Income Statement At Break-Even Point 1 2 w 4 5 Head-First Company plans to sell 5,100 bicycle helmets at $72 each in the coming year. Variable cost is 62% of the sales price, contribution margin is 38% of the sales price. Total fixed cost equals $50,000 (includes fixed factory overhead and fixed selling and administrative expense). Required: 1. Calculate the sales revenue that Head-First must make to earn operating income of $73,120 by using the point in sales equation. 2. Check your answer by preparing a contribution margin income statement based on the sales dollars calculated in Requirement 1
