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Instructions Suppose that Head-First Company now sells both bicycle helmets and motorcycle helmets. The bicycle helmets are priced at $77 and have variable costs of $47 each. The motorcycle helmets are priced at $220 and have variable costs of $145 each. Total fixed cost for Head-First as a whole equals $57,000 (includes all fixed factory overhead and fixed selling and administrative expense). Next year, Head-First expects to sell 4,850 bicycle helmets and 1,940 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 Amount Descriptions Refer to the list below for the exact wording of text items within your income statement Amount Descriptions Operating income Operating loss Sales Total contribution margin Total fixed cost Total variable cost Sales Mix and Break-Even Point 1. Form a package of bicycle and motorcycle helmets based on the sales mix expected for the coming year. Package Contribution Product Price Unit Variable Cost Unit Contribution Margin Sales Mix Margin Bicycle helmet S $ $ $ Motorcycle helmet Package $ total 2. Calculate the break-even point in units for bicycle helmets and for motorcycle helmets. Break-Even Bicycle Helmets Break-Even Motorcycle Helmets Contribution Margin Income Statement 3. Check your answer by preparing a contribution margin income statement. Refer to the list of Amount Descriptions for the exact wording of text items within your income statement. Head-First Company Contribution Margin Income Statement At Break-Even Point 1 2 3 4 5

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