Answered step by step
Verified Expert Solution
Link Copied!

Question

...
1 Approved Answer

Hermosa, Inc., produces one model of mountain bike. Partial information for the company follows: Number of bikes produced and sold 460 790 980 Total costs

Hermosa, Inc., produces one model of mountain bike. Partial information for the company follows:

Number of bikes produced and sold 460 790 980
Total costs
Variable costs $ 111,780 $ ? $ ?
Fixed costs per year ? ? ?
Total costs ? ? ?
Cost per unit
Variable cost per unit ? ? ?
Fixed cost per unit ? ? ?
Total cost per unit ? $ 534.75 ?

1. Complete the Table:
Number of bikes produced and sold 460 Units 790 Units 980 Units
Total costs
Variable costs $111,780
Fixed costs per year
Total costs $111,780 $0 $0
Cost per unit
Variable cost per unit
Fixed cost per unit
Total cost per unit $0.00 $534.75 $0.00

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 $680

460 units

790 units

980 units

3.

Calculate Hermosas break-even point in units and sales revenue. (Round your answers to the nearest whole number.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions