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Part 2 Head - First Company plans to sell 5 , 0 0 0 bicycle helmets at $ 7 0 each in the coming year.
Part HeadFirst Company plans to sell bicycle helmets at $ each in the coming year. Product costs include: Direct materials per helmet $ Direct labour per helmet $ Variable overhead per helmet $ Total fixed factory overhead $ The relevant range of production is units to units. Variable selling expense is a commission of $ per helmet; fixed selling and administrative expense totals $ Requirements: For each of the following independent situations, always go back to the original question data to answer the requirement. a Calculate the total variable cost per unit. b Calculate the total fixed expense for the year. Prepare a contribution margin income statement for HeadFirst Company for the coming year. Calculate the breakeven point in both number of helmets and sales dollars. Prepare a contribution margin income statement for HeadFirst Company at the breakeven point. a Calculate the variable cost ratio. b Calculate the contribution margin ratio. AFM ARBUS Accounting Information for Managers page of
Part
HeadFirst Company plans to sell bicycle helmets at $ each in the coming year. Product costs
include:
Direct materials per helmet $
Direct labour per helmet $
Variable overhead per helmet $
Total fixed factory overhead $
The relevant range of production is units to units.
Variable selling expense is a commission of $ per helmet; fixed selling and administrative expense
totals $
Requirements:
For each of the following independent situations, always go back to the original question data to
answer the requirement.
a Calculate the total variable cost per unit.
b Calculate the total fixed expense for the year.
Prepare a contribution margin income statement for HeadFirst Company for the coming year.
Calculate the breakeven point in both number of helmets and sales dollars.
Prepare a contribution margin income statement for HeadFirst Company at the breakeven point.
a Calculate the variable cost ratio.
b Calculate the contribution margin ratio.
AFM ARBUS Accounting Information for Managers page of
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