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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 Total cost per unit Fixed cost per unit Required: 1. Complete the table. 450 820 960 $ 107,550 $ ? $ ? ? ? ? ? ? ? ? ? ? ? ? ? ? $ 522.75 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 $790. 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 Complete the table. Note: Round your "Cost per Unit" answers to 2 decimal places. 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 450 Units 820 Units 960 Units $ 107,550 $ 107,550 $ 0 $ 0 69 0.00 69 $ 522.75 $ 0.00 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 $790. 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%.). 450 Units 820 Units 960 Units Contribution Margin Ratio Total Contribution Margin % % % Show less 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 Break-Even Sales Revenue Bikes
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