a) Ceria Company plans to sell 5,000 bicycle helmets at RM75 each in the coming year. Unit variable cost is RM45 (includes direct materials, direct labor, variable factory overhead, and variable selling expense). Total fixed cost equals RM49,500 (includes fixed factory overhead and fixed selling and administrative expense). Required: Calculate the break-even number of helmets. Check your answer by preparing a contribution margin income statement based on the break-even units.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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a) Ceria Company plans to sell 5,000 bicycle helmets at RM75 each in the coming
year. Unit variable cost is RM45 (includes direct materials, direct labor, variable
factory overhead, and variable selling expense). Total fixed cost equals RM49,500
(includes fixed factory overhead and fixed selling and administrative expense).
Required:
Calculate the break-even number of helmets. Check your answer by preparing a
contribution margin income statement based on the break-even units.
Transcribed Image Text:a) Ceria Company plans to sell 5,000 bicycle helmets at RM75 each in the coming year. Unit variable cost is RM45 (includes direct materials, direct labor, variable factory overhead, and variable selling expense). Total fixed cost equals RM49,500 (includes fixed factory overhead and fixed selling and administrative expense). Required: Calculate the break-even number of helmets. Check your answer by preparing a contribution margin income statement based on the break-even units.
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