Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Suppose that Head-First Company now snlls both bicycle helmets and matorcycle helmets. The bicycde helmets are priced at $75 and have variable costs of $44

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Suppose that Head-First Company now snlls both bicycle helmets and matorcycle helmets. The bicycde helmets are priced at $75 and have variable costs of $44 each. The motorcycle heimets are priced at $235 and have variable costs of $130 each. Total fixed cost for Head-First as a whole equals $65,700 (includes all fixed factory overhead and fixed selling and administrative experse) Next year, Head-First expects to sell 4,900 bicycle helmets and 1,960 motorcycle helmets. Required 1 Form a package of bicycle and motorcycie heimets based on the sales max expected for the comng year 2. Calculate the break-even point in units for bicycle heimets and for motorcycle heimets 3. Check your answer by preparing a contmbution margin income statement Amount Deacrtpbons Operating income Operating loss Sales Total contribution margin Total fixed cost Total variable cost Fin Company now sals bolh bloycle hermls and moloraycle heal mels The Bloycle helmels are pricnd at7and have arae The motoroycle helmats are prioed at $235 and have variable coss of $13D each Tolal nd ccl for HeadFnd asa whcle equals all fhoed factory overhead and txed sellng and administrabve expersa). Ned year, HeadFind epects lo sell 4900 bicycle halmets ole hermats cknge Sales Mbr and Break-Even Point he bre Kens od co 1. Fomm a packge af blcyole and motorcycle hemets hased on the sales mic expednd or the coming year ariabld Paokage Confributon Produot Prioe Unit Varlable Cost Unit Contribution Margin 8ales Mix Margin Bloyoe helmet Motaroyole heimet Paokage total 2. Calculate the breaineven point in unts for cicycie nemers and for matorcyoe hemets Brok Even Boycle Hemets Break-Even Mokoncycle Heimets $55,700 ncludes all fhwad actory oerhead and ithad selling and adminisiratve exparsa). Nd yoar, Head-Finst pa nd 1,960 olonayaa herats. Requirod 1. Form a packnge Bales Mb and Break-Ewen Point Contribution Margin Income Statement Head-First Company Contribution Margin Income Stalenent A Break Even Foint

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The ASQ Certified Food Safety And Quality Auditor

Authors: Steven Wilson

4th Edition

1951058186, 978-1951058180

More Books

Students also viewed these Accounting questions