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Hermosi, Inc., produces one model of mountain bike. Partial information for the company follows: 800 400 $125,000 Number of bikes produced and sold Total costs
Hermosi, Inc., produces one model of mountain bike. Partial information for the company follows: 800 400 $125,000 Number of bikes produced and sold Total costs Variable costs Fored costs per year Total costs Cost per unit Variable cost per unit Fixed cost per unit Total cost per unit 543.75 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 $650. 3. Consider the contribution margins just calculated and total fixed costs. Determine whether Hermosa's break-even point will be more or less than 500 units. 4. Calculate Hermosa's break-even point in units and sales revenue
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