Question
Hermosa, Inc., produces one model of mountain bike. Partial information for the company follows: Number of bikes produced and sold 500 850 900 Total costs
Hermosa, Inc., produces one model of mountain bike. Partial information for the company follows: Number of bikes produced and sold 500 850 900 Total costs Variable costs $ 115,500 $ ? $ ? Fixed costs per year ? ? ? Total costs ? ? ? Cost per unit Variable cost per unit ? ? ? Fixed cost per unit ? ? ? Total cost per unit ? $ 513.75 ? Required: 1. Complete the table. 2. Calculate Hermosas contribution margin ratio and its total contribution margin at each sales level indicated in the table assuming the company sells each bike for $690. 4. Calculate Hermosas break-even point in units and sales revenue.
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