Answer:
Instructions are listed below
Explanation:
Giving the following information:
Head- First expects to produce total revenue of $570,000
The total variable cost of $388,000.
The total fixed cost is expected to be $58,900.
To calculate the break-even point in dollars, we need to use the following formula:
Break-even point (dollars)= fixed costs/ contribution margin ratio
Break-even point (dollars)= 58,900 / [(570,000 - 388,000) / 570,000]
Break-even point (dollars)= 58,900/0.3193
Break-even point (dollars)= $184,466.02
Contribution margin income statement:
Contribution margin= contribution margin ratio*sales
contribution margin= 0.3193*184,466.02= 58,900
Fixed costs= (58,900)
Net operating profit= 0
