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Head-First Company plans to sell 5,800 bicycle helmets at $67 each in the coming year....

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Accounting

Head-First Company plans to sell 5,800 bicycle helmets at $67 each in the coming year. Variable cost is 54% of the sales price; the contribution margin is 46% of the sales price. Total fixed cost equals $56,235 (includes fixed factory overhead and fixed selling and administrative expense).

Required: 1. Calculate the sales revenue that Head-First must make to break even by using the break-even point in the sales equation.

2. Check your answer by preparing a contribution margin income statement based on the break-even point in sales dollars.

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