(Answered) Question break-even point in sales dollars head-first

Accounting

Question: Break-Even Point in Sales Dollars Head-First Company plans to sell 5,000 bicycle helmets at $75 each in the coming year. Variable cost is 60 percent of the sales price; contribution margin is 40 percent of the sales price. Total fixed cost equals $49,500 (includes fixed factory overhead and fixed selling and administrative expense).

Required: 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.

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