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Hermosa, Inc., produces one model of mountain bike. Partial information for the company follows: 400 800 1,000 $ $ ? Number of bikes produced and
Hermosa, Inc., produces one model of mountain bike. Partial information for the company follows: 400 800 1,000 $ $ ? 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 $125,000 ? ? ? ? ? ? ? ? ? ? ? ? $ 543.75 ? ? ? 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 $650. (Round your percentage answers to 2 decimal places. (i.e. 1234 should be entered as 12.34%.)) 400 Units 800 Units 1,000 Units % % % Contribution Margin Ratio Total Contribution Margin 4. 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 Bikes Break-Even Sales Revenue
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