Answer:
1.
Sales Ratio
Bicycle Helmet = 5000 / 7000 = 71.4%
Motorcycle Helmet = 2000 / 7000 = 28.6%
Package
Price = ( $75 x 71.4% ) + ( $220 x 28.6% ) = $116.47
Variable cost = ( $45 x 71.4% ) + ( $140 x 28.6% ) = $72.17
Contribution Margin = $116.47 - $72.17 = $44.30
2.
Breakeven point is the level of sales on which business has no profit no loss situation.
Break-even point = Fixed cost / Contribution margin = $58,900 / $44.30 = 1,329.57 units
3.
At Break-even sales operating Income should be zero
As below
Contribution margin income statement
Sales ( $116.47 x 1329.57 ) $154,855
Total variable expense ($72.17 x 1,329.57 ) $(95,955)
Total contribution margin ( $44.3 x 1329.57) $58,900
Total fixed expense $(58,900)
Operating income $0
