Question
Hermosa, Inc., produces one model of mountain bike. Partial information for the company follows: Number of bikes produced and sold 480 760 940 Total costs
Hermosa, Inc., produces one model of mountain bike. Partial information for the company follows:
Number of bikes produced and sold | 480 | 760 | 940 | ||||||||||||||||||||||||||||||||||||||||||
Total costs | |||||||||||||||||||||||||||||||||||||||||||||
Variable costs | $ | 115,680 | $ | ? | $ | ? | |||||||||||||||||||||||||||||||||||||||
Fixed costs per year | ? | ? | ? | ||||||||||||||||||||||||||||||||||||||||||
Total costs | ? | ? | ? | ||||||||||||||||||||||||||||||||||||||||||
Cost per unit | |||||||||||||||||||||||||||||||||||||||||||||
Variable cost per unit | ? | ? | ? | ||||||||||||||||||||||||||||||||||||||||||
Fixed cost per unit | ? | ? | ? | ||||||||||||||||||||||||||||||||||||||||||
Total cost per unit | ? | $ | 520.75 | ? | |||||||||||||||||||||||||||||||||||||||||
Required: 1. Complete the table. (Round your "Cost per Unit" answers to 2 decimal places.)
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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%.))
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4. Calculate Hermosas break-even point in units and sales revenue. (Round your answers to the nearest whole number.)
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