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Head-First Company plans to sell 5,170 bicycle helmets at $74 each in the coming year. 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). Break-even units equal 1,707.
Required:
Calculate the break-even number of helmets and check your answer by preparing a contribution margin income statement based on the break-even units.
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Head-First Company plans to sell 5,170 bicycle helmets at $74 each in the coming year. Unit variable...
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