Question
Hermosa, Inc., produces one model of mountain bike. Partial information for the company follows: Number of bikes produced and sold 520 800 920 Total costs
Hermosa, Inc., produces one model of mountain bike. Partial information for the company follows:
Number of bikes produced and sold | 520 | 800 | 920 | |||
Total costs | ||||||
Variable costs | $ | 121,160 | $ | ? | $ | ? |
Fixed costs per year | ? | ? | ? | |||
Total costs | ? | ? | ? | |||
Cost per unit | ||||||
Variable cost per unit | ? | ? | ? | |||
Fixed cost per unit | ? | ? | ? | |||
Total cost per unit | ? | $ | 508.75 | ? | ||
|
Required: 1. Complete the table. (Round your "Cost per Unit" answers 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 $700. (Round your percentage answers to 2 decimal places. (i.e. .1234 should be entered as 12.34%.)) 4. Calculate Hermosas break-even point in units and sales revenue. (Round your answers to the nearest whole number.)
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