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Hermosa, Inc., produces one model of mountain bike. Partial information for the company follows: Number of bikes produced and sold 520 840 910 Total costs
Hermosa, Inc., produces one model of mountain bike. Partial information for the company follows:
Number of bikes produced and sold
520 840 910
Total costs
Variable costs $ 127,920 $ ? $ ?
Fixed costs per year ? ? ?
Total costs ? ? ?
Cost per unit
Variable cost per unit ? ? ?
Fixed cost per unit ? ? ?
Total cost per unit ? $ 534.75 ?
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 $690.
4. Calculate Hermosas break-even point in units and sales revenue.
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