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Hermosa, Incorporated produces one model of mountain bike. Partial information for the company follows: Number of bikes produced and sold Total costs Variable costs Fixed
Hermosa, Incorporated produces one model of mountain bike. Partial information for the company follows: Number of bikes produced and sold Total costs Variable costs Fixed costs per year Total costs Cost per unit Variable cost per unit Fixed cost per unit Total cost per unit Required: 1. Complete the table. 400 $ 125,000 800 1,000 $ ? ? $ ? ? ? ? ? ? ? ? $ 543.75 ? 2. 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 $650. 4. Calculate Hermosa's break-even point in units and sales revenue. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 4 Complete the table. Note: Round your cost per unit answers to 2 decimal places. Number of Bikes Produced and Sold 400 Units 800 Units 1,000 Units Total costs Variable costs Fixed costs per year Total costs $ 125,000 185,000 $ 310,000 $ 250,000 ( 185,000 $ 312,500 ( 185,000 $ 435,000 $ 497,500 Cost per unit Variable cost per unit $ Fixed cost per unit 312.50 462.50 $ 312.50 $ 231.25 312.50 185.00 Total cost per unit $ 775.00 $ 543.75 $ 497.50 < Required 1 Required 2 > 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 $650. Note: Do not round your intermediate calculations. Round your percentage answers to 2 decimal places. (i.e. 0.1234 should be entered as 12.34%.). 400 Units 800 Units 1,000 Units Contribution Margin Ratio Total Contribution Margin % % % $ 135,000 $ 270,000 $ 337,500 < Required 1 Required 4 > Show less 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. Note: Do not round your intermediate calculations. Round your "Unit" and "Sales Revenue" answers to the nearest whole number. Break-Even Units 549| Bikes Break-Even Sales Revenue < Required 2 Required 4 >
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