Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Need solved ASAP with formula used thanks! PA6-1 Calculating Contribution Margin, Contribution Margin Ratio, Break-Even Point [LO 6-1,6-2 Hermosa, Inc., produces one model of mountain
Need solved ASAP with formula used 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 sold Total costs 520 750 980 $126,880 ? ariable costs Fixed costs per year Total costs Cost per unit Variable cost per unit Fixed oost per unit Total cost per unit 52275 1. Complete the table. (Round your "Cost per Unit" answers to 2 decimal places.) Number of bikes Total costs 520 Units 750 Units 980 Units Variable costs S 126.880 Foed oosts per year Total costs Cost per unit Variable cost per unit Fixed cost per unit Total cost per unit S 522.75 2. Caloulate Hermosa's contribution margin rato and its total contribution margin at each sales level indioated in the table assuming the company selils each bike for $690. (Round your percentage answers to 2 decimal places.(Le.-1234 should be entered as 12.34% 520 Units Units 980 Units Raio Total Contribution 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 Sales Revenue BikesStep 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