Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

00 8 PA6-1 (Algo) Calculating Contribution Margin, Contribution Margin Ratio, Break-Even Point (LO 6-1, 6-2] Hermosa, Inc., produces one model of mountain bike. Partial information

image text in transcribedimage text in transcribedimage text in transcribed

00 8 PA6-1 (Algo) Calculating Contribution Margin, Contribution Margin Ratio, Break-Even Point (LO 6-1, 6-2] Hermosa, Inc., produces one model of mountain bike. Partial information for the company follows: 2.5 points 500 800 900 $ Number of bikes produced and sold Total costs Variable costs Fixed costs per year Total costs Cost per unit Variable cost per unit Fixed cost per unit Total cost per unit $119,000 2 2 ? 2 ? $ ? ? ? cBook ? ? 2 ? ? ? $515.75 Print References Required: 1. Complete the table. 2. Calculate Hermosa's contribution margin ratio and its total contribution margin at each sales level indicated in the table assuming the company sells each bike for $730. 4. Calculate Hermosa's break-even point in units and sales revenue. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 4 Complete the table. (Round your "Cost per Unit" answers to 2 decimal places.) 500 Units 800 Units 900 Units $ 119,000 Number of bikes produced and sold Total costs Variable costs Fixed costs per year Total costs Cost per unit Variable cost per unit Fixed cost per unit Total cost per unit 515.75 Required 1 Required 2 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 4 Calculate Hermosa's contribution margin ratio and its total contribution margin at each sales level indicated in the table assuming the company sells each bike for $730. (Round your percentage answers to 2 decimal places. (.e. .1234 should be entered as 12.34%.)) 500 Units 800 Units 900 Units % % % Contribution Margin Ratio Total Contribution Margin

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions