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Cornerstones of Managerial Accounting 6th Edition by Maryanne Mowen,Don Hansen ,Dan Heitger
Edition 6ISBN: 978-1305103962Cornerstones of Managerial Accounting 6th Edition by Maryanne Mowen,Don Hansen ,Dan Heitger
Edition 6ISBN: 978-1305103962 Exercise 23
Break-Even Sales Dollars for a Multiple-Product Firm
Head-First Company now sells both bicycle helmets and motorcycle helmets. Next year, Head-First expects to produce total revenue of $570,000 and incur total variable cost of $388,000. Total fixed cost is expected to be $58,900.
Required:
1. Calculate the break-even point in sales dollars for Head-First. ( Note : 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 $570,000 and incur total variable cost of $388,000. Total fixed cost is expected to be $58,900.
Required:
1. Calculate the break-even point in sales dollars for Head-First. ( Note : 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.
Explanation
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1. Calculation of Break-even u...
Cornerstones of Managerial Accounting 6th Edition by Maryanne Mowen,Don Hansen ,Dan Heitger
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