Answered step by step
Verified Expert Solution
Question
1 Approved Answer
I need help solving this question. Thanks! PA6-1 Calculating Contribution Margin, Contribution Margin Ratio, Break-Even Point [LO 6-1, 6-2) Hermosa, Inc, produces one model of
I need help solving this question. Thanks!
PA6-1 Calculating Contribution Margin, Contribution Margin Ratio, Break-Even Point [LO 6-1, 6-2) Hermosa, Inc, produces one model of mountain bike. Partial information for the company follows: Number of bikes produced and soid Total costs 480 Variable cests Foxed costs per year 119.500 Total costs Cost per unit Varabla cost Faed cost per unt Total coat per unit 528.76 1. Complete the table. (Round your "Cost per Unit' answers to 2 decimal places.) of bikes produced and sold 490 Units 860 Unit: Units Total costs Variable coats S 118.530 Foced coss per year Total costs Coat per unit arlable cost per unit Ficed cost per unit Tolal cost per unit 528.75 2. Calculate Her mosas contr bution maryn ratio nd ts to al contr bu on margin a each sa es e el ndicated i he table assuming he company 5els each bike $750 Round your percen age answers to 2 decr al places 1 1234 5hould be entered as 12.34% 490 Units 850 Unit5 930 Units Contribution Margin Rato Total Contribution Margin 4. Calculate Hermosa s break-even point in units and sales revenue. (Round your answers to the nearest whole number.) Break-Even Units Break-Even Sa RevenueStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started