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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
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 450 810 950 $107,100 ? Variable costs Fixed costs per year Total costs Cost per unit Variable cost per unit Fixed cost per unit Total cost per unit $527.75 Required 1. Complete the table. (Round your "Cost per Unit" answers to 2 decimal places.) Number of bikes produc Total costs 450 Units 810 Units950 Units and sold Variable costs $ 107,100 Fixed costs per year Total costs $ 107,100 S Cost per unit Variable cost per unit Fixed cost per unit Total cost per unit S 0.00527.75 S 0.00 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 $690. (Round your percentage answers to 2 decimal places. (i.e. .1234 should be entered as 12.34%.)) 450 Units 810 Units 950 Units Contribution Margin Ratio 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 Sales Revenue Bikes
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