Question

Hello! I can't solve this problem and I could really use some help.

Thanks so much!

Suppose that Head-First Company now sells both bicycle helmets and motorcycle helmets. The bicycle helmets are priced at $75 and have variable costs of $44 each. The motorcycle helmets are priced at $235 and have variable costs of $130 each. Total fixed cost for Head-First as a whole equals $65,700 (includes all fixed factory overhead and fixed selling and administrative expense). Next year, Head-First expects to sell 4,900 bicycle helmets and 1,960 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.

Answer 1

Aus& faCkase Cmtbtian Mangim 151,300 Sales tmt Vabe Umı't prie Cotwibutin Mgin 31 Brocduct Cost Bicyole H9o0 Helmut 4R0S, Boo 1960 Motoryde Helmet 105 1B0 Package 357,70

ereak even Biuycle Helmwts e65o0 -x५9 ०० = | 300 4357700 eneae evwn Motos ycle Helmets & t00 357700 /9N0360 2 Biyde 67 S00 Motor Cyde 84,600 Totd IS2,100 Sales Vardeble Cost 39, 600 4,BO0 86, 400 onvibuhm Margin ,300 37, 8oo 6 S, Foo 65, 7० dixed Co st oferati n
If you have any query ask in comment section. If you like my work plz rate. Thanks