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 $390,000. Total fixed cost is expected. to be $60,800. Required: 1. Calculate the break-even point in sales dollars for Head-First. Round the contribution margin ratio to four decimal places and sales to the nearest dollar. 2. Check your answer by preparing a contribution margin income statement.
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 $390,000. Total fixed cost is expected. to be $60,800. Required: 1. Calculate the break-even point in sales dollars for Head-First. Round the contribution margin ratio to four decimal places and sales to the nearest dollar. 2. Check your answer by preparing a contribution margin income statement.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please help me with show all calculation thanku
Transcribed Image Text: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
$390,000. Total fixed cost is expected
to be $60,800. Required: 1. Calculate
the break-even point in sales dollars
for Head-First. Round the contribution
margin ratio to four decimal places
and sales to the nearest dollar. 2.
Check your answer by preparing a
contribution margin income statement.
nammig
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