Head-First Company plans to sell 4,400 bicycle helmets at $84 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 $60,450 (includes fixed factory overhead and fixed selling and administrative expense).   Required: 1. Calculate the break-even number of helmets. 2. Check your answer by preparing a contribution margin income statement based on the break-even units

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A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: What is the total cost of producing 2,000 tires? Select one: a. $88,000 b. $68,000 c. $98,000 d.…

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A:

Q: Head-First Company plans to sell 5,000 bicycle helmets at $75 each in the coming year. Unit variable…

A: Total Contribution Margin = (Selling priceper unit - Variable costs per unit) x No. of Units sold =…

Q: Sheridan, Inc. produces three types of balloons-small, medium, and large-with the following…

A:

Q: DMC produces on average 7,500 units - 12,500 units. The following unit costs are incurred for…

A: Hi student Since there are multiple subparts, we will answer only first three subparts.

Q: Suppose you manufacture and sell motorcycle helmets.  Helmets sell for $25 each.  Information about…

A: The Break-even point is the point where the company has neither the loss nor the profit. Break-even…

Q: Garcia Co. sells snowboards. Each snowboard requires direct materials of $105, direct labor of $35,…

A: First compute the fixed cost per unit: Fixed cost per unit = ($645,000 + $111,000)/10,500 Fixed cost…

Q: Margin of Safety Head-First Company plans to sell 5,150 bicycle helmets at $68 each in the coming…

A: Margin of safety is defined as sales more than the break even sales, hence if we have sales more…

Q: The Robinson Lawn Chair Company produces and sells a single high-priced lawn chair and in fiscal…

A: Hi student Since there are multiple subparts, we will answer only first three subparts.

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A: CVP analysis is considered a decision-making tool that helps management to make strategies and take…

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A: Calculate the contribution margin per hour:

Q: The following monthly data are available for the Johnson Company and its only product, Product MC:…

A: a. The total contribution margin at a break even point amount is equal to fixed expenses amount as…

Q: EasyWriter manufactures an erasable ballpoint pen, which sells for $1.75 per unit. Management…

A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

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A: Since the machine hours are limited, it needs to be considered while making the decision so as to…

Q: 1. What is the break-even level in tires? 2. What is the margin of safety, assuming sales total…

A: Comment: The Question is Multipart, so SME will answer only three subparts as per Bartleby…

Q: Monet Company plans to sell 10,000 motorcycle helmets at P1,000 each in the coming year. Variable…

A: Break Even Point in Units:    = Fixed Costs ÷ Contribution Margin per Unit  Break Even Point in…

Q: XYZ Company produces two models of wood chairs, A and B. The selling price per unit and the variable…

A: Variable cost per unit (A)=$210+$60=$270Variable cost per unit (B)=$228+$72=$300

Q: Calculate the number of helmets Head-First must sell to earn operating income of $81,900.…

A: In this numerical has covered the concept of Cost - Volume-Profit Analysis and Contribution Margin…

Q: If the sales mix and sales units are as expected, the break-even in sales ($) is: (round figures to…

A: A break even point is the production level at which the company is able to recover all of its fixed…

Q: Edwards & co manaufactures teddy bears. The company's bears are in demand all year round and in the…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: Head-First Company plans to sell 4,950 bicycle helmets at $72 each in the coming year. Unit variable…

A: Margin of Safety = Total Sales - Breakeven Sales

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A:

Q: Head-First Company plans to sell 5,000 bicycle helmets at $75 each in the coming year.Variable cost…

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A: The required calculations are metrics of cost sheet. The calculation is shown in next step

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A: Part 1:

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A: Incase of Sales mix, we would calculate Weighted average contribution for Overall BEP

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A: Hi student Since there are multiple subparts, we will answer only first three subparts. If you want…

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A: Answer:   Variable Cost includes both the costs Variable Manufacturing cost and Variable Selling…

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Q: Head-First Company plans to sell 4,400 bicycle helmets at $78 each in the coming year. Unit variable…

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A:

Q: Auto Tires, Inc. sells tires to service stations for an average of $145 each. The variable costs of…

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A: “Since you have asked multiple questions, we will solve the first question for you. If youwant any…

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Variance Analysis

In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance. 

Standard Costing

The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.