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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
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. 480 780 940 $ 115,680 $7 $7 7 ? ? ? ? ? 2 7 ? $ 527.75 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 $820. 4. Calculate Hermosa's break-even point in units and sales revenue. 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 480 Units 780 Units 940 Units Total costs Variable costs Fixed costs per year Total costs S 115.680 $ 115,680 S 0 $ 0 Cost per unit Variable cost per unit Fixed cost per unit Total cost per unit S 0.00 $ 527.75 $ 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 $820. 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%.). Show less & Contribution Margin Ratio Total Contribution Margin 480 Units 780 Units 940 Units % % % < Required 1 Required 4 > 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 Break-Even Sales Revenue Bikes < Required 2
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