Question
Hermosa, Inc., produces one model of mountain bike. Partial information for the company follows: Number of bikes produced and sold 450 840 910 Total
Hermosa, Inc., produces one model of mountain bike. Partial information for the company follows: Number of bikes produced and sold 450 840 910 Total costs Variable costs $109,800 2 $ 7 2 2 Fixed costs per year ? ? 2 Total costs Cost per unit 2 2 Variable cost per unit 7 Fixed cost per unit $533.75 Total cost per unit 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 $740. 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 i Total cost per unit 450 Units 840 Units 910 Units $ 109,800 $ 533.75 Requir Required 2 >
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