Solution-Calculate the break-even number of helmets

Calculate the break-even number of helmets

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Reference no: EM132871560

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Q1. Head-First Company plans to sell 5,000 bicycle helmets at $75 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). Calculate the break-even number of helmets. Check your answer by preparing a contribution margin income statement based on the break-even units.

Q2. Head-First Company plans to sell 5,000 bicycle helmets at $75 each in the coming year. Unit variable cost is $45 (includes direct materials, direct labor, variable factory overhead, and variable selling expense). Fixed factory overhead is $20,000, and fixed selling and administrative expense is $29,500. Calculate the variable cost ratio. Calculate the contribution margin ratio.

Reference no: EM132871560

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Calculate the break-even number of helmets

Reference no: EM132871560

Reference no: EM132871560

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