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Problem 2: Break-Even Point in Units Head - First Company plans to sell 5,000 bicycle helmets at $75 each in the coming year. The unit variable cost is $45 (includes direct materials, direct labor, variable factory overhead, and variable selling expense). Total fixed cost equals $49,500 (includes fixed 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.

Problem 2: Break-Even Point in Units Head - First Company plans to sell 5,000 bicycle helmets at $75 each in the coming year. The unit variable cost is $45 (includes direct materials, direct labor, variable factory overhead, and variable selling expense). Total fixed cost equals $49,500 (includes fixed 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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Problem 2: Break-Even Point in Units

Head - First Company plans to sell 5,000 bicycle helmets at $75 each in the coming year. The unit
variable cost is $45 (includes direct materials, direct labor, variable factory overhead, and variable selling expense). Total fixed cost equals $49,500 (includes fixed 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.

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