Question

Head-First Company now sells both bicycle helmets and motorcycle helmets. Next year, Head-
First expects to produce total revenue of $570,000 and incur total variable cost of $388,000.
Total fixed cost is expected to be $58,900.

Required:
1. Calculate the break-even point in sales dollars for Head-First. (Note: Round the contribution margin ratio to four decimal places.)
2. Check your answer by preparing a contribution margin income statement.


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  • CreatedSeptember 22, 2015
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