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Hermosa, Incorporated produces one model of mountain bike. Partial information for the company follows: Number of bikes produced and sold 500 770 900 Total costs
Hermosa, Incorporated produces one model of mountain bike. Partial information for the company follows:
Number of bikes produced and sold | 500 | 770 | 900 |
---|---|---|---|
Total costs | |||
Variable costs | $ 118,500 | $ ?Question mark | $ ?Question mark |
Fixed costs per year | ?Question mark | ?Question mark | ?Question mark |
Total costs | ?Question mark | ?Question mark | ?Question mark |
Cost per unit | |||
Variable cost per unit | ?Question mark | ?Question mark | ?Question mark |
Fixed cost per unit | ?Question mark | ?Question mark | ?Question mark |
Total cost per unit | ?Question mark | $ 530.75 | ?Question mark |
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 $680.
4. Calculate Hermosas break-even point in units and sales revenue.
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