Using the break-even point in sales equation

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Reference no: EM131263410

Head-First Company plans to sell 4,700 bicycle helmets at $75 each in the coming year. Variable cost is 64% of the sales price; contribution margin is 36% of the sales price. Total fixed cost equals $45,090 (includes fixed factory overhead and fixed selling and administrative expense).

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

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

Reference no: EM131263410

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Using the break-even point in sales equation : Head-First Company plans to sell 4,700 bicycle helmets at $75 each in the coming year. Variable cost is 64% of the sales price; contribution margin is 36% of the sales price. Total fixed cost equals $45,090. Calculate the sales revenue that Head-Firs..

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