PA6-1 (Algo) 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		480		850		910
Total costs
Variable costs	$	117,120	$	?	$	?
Fixed costs per year		?		?		?
Total costs		?		?		?
Cost per unit
Variable cost per unit		?		?		?
Fixed cost per unit		?		?		?
Total cost per unit		?	$	519.75		?

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 $830.

4. Calculate Hermosas break-even point in units and sales revenue.

Complete the table. (Round your "Cost per Unit" answers to 2 decimal places.)

Number of bikes produced and sold	480 Units	850 Units	910 Units
Total costs
Variable costs	$117,120
Fixed costs per year
Total costs
Cost per unit
Variable cost per unit
Fixed cost per unit
Total cost per unit		$519.75

• Required 1