Head-First Company now sells both bicycle helmets and motorcycle helmets. Next year, Head- First expects to produce total revenue of $575,000 and incur total variable cost of $400,000. Total fixed cost is expected to be $60,500.
Required: | |
1. | Calculate the break-even point in sales dollars for Head-First. Round the contribution margin ratio to four decimal places and sales to the nearest dollar. |
2. | Check your answer by preparing a contribution margin income statement |
1. Contribution margin% = (sales-variable cost)/sales
= (575000-400000)/575000 = 30.4348%
Break even sales = Fixed expense / Sales
= 60500/30.4348%
= $198786
2.
Sales | 198786 |
Less: variable cost (400000/575000*198786) | 138286 |
Contribution margin | 60500 |
Less: fixed expense | 60500 |
Profit | 0 |
Head-First Company now sells both bicycle helmets and motorcycle helmets. Next year, Head- First expects to...
Head-First Company now sells both bicycle helmets and motorcycle helmets. Next year, Head- First expects to produce total revenue of $575,000 and incur total variable cost of $400,000. Total fixed cost is expected to be $60,500. Required: 1. Calculate the break-even point in sales dollars for Head-First. Round the contribution margin ratio to four decimal places and sales to the nearest dollar. 2. Check your answer by preparing a contribution margin income statement.
Head-First Company now sells both bicycle helmets and motorcycle helmets. Next year, Head- First expects to produce total revenue of $575,000 and incur total variable cost of $400,000. Total fixed cost is expected to be $60,500. Required: 1. Calculate the break-even point in sales dollars for Head-First. Round the contribution margin ratio to four decimal places and sales to the nearest dollar. 2. Check your answer by preparing a contribution margin income statement
Head-First Company now sells both bicycle helmets and motorcycle helmets. Next year, Head- First expects to produce total revenue of $575,000 and incur total variable cost of $400,000. Total fixed cost is expected to be $60,500. Required: 1. Calculate the break-even point in sales dollars for Head-First. Round the contribution margin ratio to four decimal places and sales to the nearest dollar. 2. Check your answer by preparing a contribution margin income statement.
Head-First Company now sells both bicycle helmets and motorcycle helmets. Next year, Head- First expects to produce total revenue of $575,000 and incur total variable cost of $400,000. Total fixed cost is expected to be $60,500. Required: 1. Calculate the break-even point in sales dollars for Head-First. Round the contribution margin ratio to four decimal places and sales to the nearest dollar. 2. Check your answer by preparing a contribution margin income statement. 1. Calculate the break-even point in sales...
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Hello! So i am trying to solve some of these questions, and this is one of the problems I am stuck on. If someone could provide a step by step that would be great, thanks. Head-First Company now sells both bicycle helmets and motorcycle helmets. Next year, Head- First expects to produce total revenue of $560,000 and incur total variable cost of $368,000. Total fixed cost is expected to be $57,200. Required: 1. Calculate the break-even point in sales dollars...