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Hermosa, Inc., produces one model of mountain bike. Partial information for the company follows: Number of bikes produced and sold Total costs Variable costs
Hermosa, Inc., produces one model of mountain bike. Partial information for the company follows: 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 Required: 470 820 980 $115,620 ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? $ 532.75 ? 1. Complete the table. 2. Calculate Hermosa's contribution margin ratio and its total contribution margin at each sales level indicated in the table as the company sells each bike for $670. 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.) 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 470 Units 820 Units 980 Units $ 115,620 532.75 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 $670. (Round your percentage answers to 2 decimal places. (i.e. .1234 should be entered as 12.34%.)) Contribution Margin Ratio Total Contribution Margin 470 Units 820 Units 980 Units % % % Calculate Hermosa's break-even point in units and sales revenue. (Round your "Unit" and "Sales Revenue" answers to the nearest whole number.) Break-Even Units Break-Even Sales Revenue Bikes
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