Hermosa, Inc., produces one model of mountain bike. Partial information for the company follows: ...
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Accounting
Hermosa, Inc., produces one model of mountain bike. Partial information for the company follows:
Number of bikes produced and sold
460
790
980
Total costs
Variable costs
$
111,780
$
?
$
?
Fixed costs per year
?
?
?
Total costs
?
?
?
Cost per unit
Variable cost per unit
?
?
?
Fixed cost per unit
?
?
?
Total cost per unit
?
$
534.75
?
1. Complete the Table:
Number of bikes produced and sold
460 Units
790 Units
980 Units
Total costs
Variable costs
$111,780
Fixed costs per year
Total costs
$111,780
$0
$0
Cost per unit
Variable cost per unit
Fixed cost per unit
Total cost per unit
$0.00
$534.75
$0.00
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 $680
460 units
790 units
980 units
3.
Calculate Hermosas break-even point in units and sales revenue. (Round your answers to the nearest whole number.)
Answer & Explanation
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