Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Hermosa, Inc., produces one model of mountain bike. Partial information for the company follows: Number of bikes produced and sold 540 790 910 Total costs
Hermosa, Inc., produces one model of mountain bike. Partial information for the company follows:
Number of bikes produced and sold | 540 | 790 | 910 | |||
Total costs | ||||||
Variable costs | $ | 126,360 | $ | ? | $ | ? |
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.
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 $800.
4. Calculate Hermosas break-even point in units and sales revenue.
Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 4 Complete the table. (Round your "Cost per Unit" answers to 2 decimal places.) Number of bikes produced and sold 540 Units 790 Units 910 Units Total costs Variable costs $ 126,360 Fixed costs per year Total costs $ 126,360 $ O $ 0 Cost per unit Variable cost per unit Fixed cost per unit Total cost per unit 0.00 508.75 0.00 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 4 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 $800. (Round your percentage answers to 2 decimal places. (i.e. .1234 should be entered as 12.34%.)) 540 Units 790 Units 910 Units % % % Contribution Margin Ratio Total Contribution Margin Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 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 RevenueStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started