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Head-First Company plans to sell 4,400 bicycle helmets at $72 each in the coming year....

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Question

Accounting

Head-First Company plans to sell 4,400 bicycle helmets at $72 each in the coming year. Variable cost is 56% of the sales price; contribution margin is 44% of the sales price. Total fixed cost equals $54,560(includes fixed factory overhead and fixed selling and administrative expense).
Required:
Calculate the sales revenue that Head-First must make to break even by using the break-even point in sales equation.
Check your answer by preparing a contribution margin income statement based on the break-even point in sales dollars.
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