Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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 540 800 960 $ 126,900 $ 2 $ 2 2 ? 2 2 2 2 2 2 2 $ 523.75 2 Required: 1. Complete the table. 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 $830. 4. Calculate Hermosa's break-even point in units and sales revenue. Complete this question by entering your answers in the tabs below. Required 11 Required 2 Required 4 Complete the table. Note: Round your "Cost per Unit" answers to 2 decimal places. Number of bikes produced and sold 540 Units 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 $ 126,900 800 Units 960 Units $ 523.75 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. 540 800 960 $ 126,900 $? $ ? ? 2 2 2 2 2 2 2 2 2 $ 523.75 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 $830. 4. Calculate Hermosa's 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 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 $830. 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%.). 540 Units 800 Units 960 Units Contribution Margin Ratio Total Contribution Margin % % % Show less A 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 540 800 960 $ 126,900 $ 7 $ 7 ? ? ? 2 ? ? 2 2 2 2 $ 523.75 Required: 1. Complete the table. es 2. Calculate Hermosa's contribution margin ratio and its total contribution margin at each sales level indicated in the table assu the company sells each bike for $830. 4. Calculate Hermosa's break-even point in units and sales revenue. Complete this question by entering your answers in the tabs below. Required 1 Required 2 tequired 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 Bikes Break-Even Sales Revenue

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financing China S Belt And Road Initiative

Authors: XIAO Gang

1st Edition

1032027479, 978-1032027470

More Books

Students also viewed these Accounting questions