Head-First Company plans to sell 4,400 bicycle helmets at $78 each in the coming year. Unit variable cost is $45 (includes direc
t materials, direct labor, variable factory overhead, and variable selling expense). Total fixed cost equals $50,300 (includes fixed factory overhead and fixed selling and administrative expense).
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 expense
Total variable expense
1. Calculate the number of helmets Head-First must sell to earn operating income of $94,900.
helmets:
2. Check your answer by preparing a contribution margin income statement based on the number of units calculated. 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
Based on Helmets Sold
1.Sales
2.Total Revenue Expense
3.Total Contribution margin
4.Total fixed expense 50,300
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 expense
Total variable expense
1. Calculate the number of helmets Head-First must sell to earn operating income of $94,900.
helmets:
2. Check your answer by preparing a contribution margin income statement based on the number of units calculated. 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
Based on Helmets Sold
1.Sales
2.Total Revenue Expense
3.Total Contribution margin
4.Total fixed expense 50,300
1 answer:
Answer:
Answer for the question
Head-First Company plans to sell 4,400 bicycle helmets at $78 each in the coming year. Unit variable cost is $45 (includes direct materials, direct labor, variable factory overhead, and variable selling expense). Total fixed cost equals $50,300 (includes fixed factory overhead and fixed selling and administrative expense).
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 expense
Total variable expense
1. Calculate the number of helmets Head-First must sell to earn operating income of $94,900.
helmets:
2. Check your answer by preparing a contribution margin income statement based on the number of units calculated. 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
Based on Helmets Sold
1.Sales
2.Total Revenue Expense
3.Total Contribution margin
4.Total fixed expense 50,300
Is given in the attachment.
Explanation:
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Answer:
Gross profit margin requires revenue and gross profit of the company.
Current ratio = 1.386 x
Debt ratio = 0.123 x
Explanation:
Gross profit margin requires revenue and gross profit of the company which is provided in the question but it can be calculated using this formula ; Total revenue / gross profit . where Gross profit = Revenue - cost of goods sold
Current ratio is calculated using the formula ; current assets/ current liabilities lets assume the left column is for the most recent year then current ratio = 4612200/3325950 = 1.386x
Debt ratio is calculated using the formula ; total debts/total assets lets assume once more that the left column is the most recent year. note; total debts = long term + current notes payable = 454800 + 277550
therefore debt ratio = 732350 / 5957800 = 0.123x
attached is the income statement and balance sheet
