Calculate the break-even point in units for bicycle

Assignment Help Accounting Basics
Reference no: EM133047326

Question - Suppose that Head-First Company now sells both bicycle helmets and motorcycle helmets. The bicycle helmets are priced at $72 and have variable costs of $42 each. The motorcycle helmets are priced at $210 and have variable costs of $145 each. Total fixed cost for Head-First as a whole equals $44,800 (includes all fixed factory overhead and fixed selling and administrative expense). Next year, Head-First expects to sell 4,800 bicycle helmets and 1,920 motorcycle helmets.

Required -

1. Form a package of bicycle and motorcycle helmets based on the sales mix expected for the coming year.

2. Calculate the break-even point in units for bicycle helmets and for motorcycle helmets.

3. Check your answer by preparing a contribution margin income statement.

Reference no: EM133047326

Questions Cloud

How many tickets of each kind have been? sold : A basketball team sells tickets that cost? $10, $20,? or, for VIP? seats,? $30. The total sales are ?$63,900. How many tickets of each kind have been? sold
What about tracking green cell phone : Dan Bernardez just returned from a trip to observe his newest salesperson Austin Green. Green had set up an inefficient schedule for making calls when his visit
What is resources : What is resources? What is accountability? Explain these with an example from your work, school, or family life for one of these ideas.
Review of the privacy management privacy : Completeness of your review of the Privacy Management Privacy. If reference is used, please add on the website address.
Calculate the break-even point in units for bicycle : The bicycle helmets are priced at $72 and have variable costs of $42 each. Calculate the break-even point in units for bicycle
What life insurance is meant to protect : -Considering what life insurance is meant to protect against, do you think you need to purchase life insurance at this point. If you believe you need it, explai
Pitfalls of 360-degree evaluation systems : 1. Larry Bossidy (former CEO of Allied Signal) looks for the following qualities when evaluating job candidates:
What the net cash provided by operating activities : Problem - Oracle Company reported net income of $290,000 for the year. What the net cash provided by operating activities
Explain the types of cooperative : What types of cooperative moves could your college use to partner with local, national, and international businesses? What benefits and risks would be created b

Reviews

Write a Review

Accounting Basics Questions & Answers

  Record the division of net income

If Andrea Gant withdraws $30,000 in cash for personal use in lieu of salary, which account is debited and which is credited?

  Provide the journal entry for the vacation pay

Only $210,000 was contributed to the pension plan administrator. Provide the journal entry for the (a) vacation pay and (b) pension benefit

  How xbrl differs from html

How XBRL differs from HTML and how XBRL is being used in financial reporting. Do you believe that the use of XBRL improves transparency in financial reporting?

  What was the total partnership income

J and P are partners who share profits and losses, If P's total share of partnership income was P 200,000 in 2020, what was the total partnership income?

  Prepare a schedule to determine Gentry cash balance

Starting with the bank statement balance, prepare a schedule to determine Gentry's cash balance on August 31, prior to any required adjustments

  What would his equivalent annual salary

If he were to receive an equal salary at the end of each of the 5 years from 2009 to 2014, what would his equivalent annual salary be!

  The machine will provide cost savings of 15000 per year

the machine will provide cost savings of 15000 per year for the next four years. if the companys required rate of

  Assume that the real interest rate

A) What is the nominal interest rate (before default & maturity premiums) that will be built into every loan contract?

  On october 1 of the current year a corporation sold at par

on october 1 of the current year a corporation sold at par plus accrued interest 1000000 of its 12 bonds which were

  Cost recovery deduction for the business assets

Alice purchased office furniture on September 20, 2010, for $100,000. On October 10, she purchased business computers for $80,000. Alice did not elect to expense any of the assets under sect; 179. Determine the cost recovery deduction for the busi..

  Determine the dollar value of cash provided

Ocean Pines prepares their Statement of Cash Flows using the indirect method. Use this information to determine the dollar value of cash provided

  How much overhead should be applied to that job

Benjamin Products uses job order costing and assigns overhead to specific jobs using direct labor hours. During the month of June, a total of 5,000 direct labor hours at a cost of $16 per hour were incurred for all jobs. Actual overhead costs f..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd