Question: Break-Even Sales Dollars for a Multiple-Product Firm Head-First Company now sells both bicycle helmets and motorcycle helmets. Next year, HeadFirst 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.
2. Check your answer by preparing a contribution margin income statement.