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Instructions Head-First Company plans to sell 4,400 bicycle helmets at $72 each in the coming year. Product costs include: Direct materials per helmet $ 30 Direct labor per helmet 5.00 Variable factory overhead per helmet 4.50 Total fixed factory overhead 20,000 Variable selling expense is a commission of $3.30 per helmet; fixed selling and administrative expense totals $28,500. Required: 1. Calculate the total variable cost per unit. 2. Calculate the total fixed expense for the year. 3. Prepare a contribution margin income statement for Head-First Company for the coming year. 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 Cost Calculations 1. Calculate the total variable cost per unit. Round your answer to two decimal places. Variable cost per unit $1,650.00 2. Calculate the total fixed expense for the year. Total fixed expense for the year $ - Vurvurur TV cucur vuurpol TOY TVI TO Juur. 3. Prepare a contribution margin income statement for Head-First Company for the coming year. Refer to the list of Amount Descriptions for the exact wording of text items within your income statement. Round your per unit answers to two decimal places. Head-First Company Contribution Margin Income Statement For the Coming Year 1 Total Per Unit 2 3 4 5 6 Instructions 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 Unit Break-Even Point in the ct labor 1. Calculate the break-even number of helmets. cost d helmets he 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 2 3 4 5 5
