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PA 6 - 1 ( Algo ) Calculating Contribution Margin, Contribution Margin Ratio, Break - Even Point [ LO 6 - 1 , 6 -
PAAlgo Calculating Contribution Margin, Contribution Margin Ratio, BreakEven Point LO
Hermosa, Incorporated produces one model of mountain bike. Partial information for the company follows:
Number of bikes produced and sold
Total costs
Variable costs $ $ 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 $ Question mark
Required:
Complete the table.
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 $
Calculate Hermosas breakeven point in units and sales revenue.
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