Question
Hermosa, Inc., produces one model of mountain bike. Partial information for the company follows: Number of bikes produced and sold 400 800 1,000 Total costs
| Hermosa, Inc., produces one model of mountain bike. Partial information for the company follows: |
| Number of bikes produced and sold | 400 | 800 | 1,000 | |||
| Total costs | ||||||
| Variable costs | $ | 125,000 | $ | ? | $ | ? |
| Fixed costs per year | ? | ? | ? | |||
| Total costs | ? | ? | ? | |||
| Cost per unit | ||||||
| Variable cost per unit | ? | ? | ? | |||
| Fixed cost per unit | ? | ? | ? | |||
| Total cost per unit | ? | $ | 543.75 | ? |
| Required: | |
| 1. | Complete the table.(Round your cost per unitanswers to 2 decimal places.) |
| 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 $650.(Round your answers to 2 decimal places.) |
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Financial Accounting Tools for Business Decision Making
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
9th edition
1-119-49356-3, 1119493633, 1119493560, 978-1119493631
