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Head-First Company plans to sell 4,400 bicycle helmets at $72 each in the coming year. Unit variable cost is $45 (includes direct materials, direct labor varsable factory overhead, and variable selling expense) Total foxed cost equals $41,310 (includes foxed 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

Head-First Company plans to sell 4,400 bicycle helmets at $72 each in the coming year. Unit variable cost is $45 (includes direct materials, direct labor varsable factory overhead, and variable selling expense) Total foxed cost equals $41,310 (includes foxed 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

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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**Head-First Company Projected Sales Analysis** **Overview:** Head-First Company plans to sell 4,400 bicycle helmets at $72 each in the coming year. The company anticipates a unit variable cost of $45, incorporating direct materials, direct labor, variable factory overhead, and variable selling expenses. The total fixed costs are projected at $41,310, which includes fixed factory overhead and fixed selling and administrative expenses. **Requirements:** 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.**
Transcribed Image Text:**Head-First Company Projected Sales Analysis** **Overview:** Head-First Company plans to sell 4,400 bicycle helmets at $72 each in the coming year. The company anticipates a unit variable cost of $45, incorporating direct materials, direct labor, variable factory overhead, and variable selling expenses. The total fixed costs are projected at $41,310, which includes fixed factory overhead and fixed selling and administrative expenses. **Requirements:** 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.**
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