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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:
|
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.)
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