Question
Hermosa, Incorporated produces one model of mountain bike. Partial information for the company follows: Number of bikes produced and sold 500 830 930 Total costs
Hermosa, Incorporated produces one model of mountain bike. Partial information for the company follows:
Number of bikes produced and sold 500 830 930
Total costs
Variable costs $ 121,000 $ ?
Fixed costs per year ?
Total costs ?
Cost per unit
Variable cost per unit ?
Fixed cost per unit ?
Total cost per unit ? $ 530.75
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 $750.
4. Calculate Hermosas break-even point in units and sales revenue.
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