Hermosa, Incorporated produces one model of mountain bike. Partial information for the company follows: ...

80.2K

Verified Solution

Question

Accounting

Hermosa, Incorporated produces one model of mountain bike. Partial information for the company follows:

Number of bikes produced and sold 500 770 900

Total costs

Variable costs $ 118,500 $ ?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 $ 530.75 ?Question mark

Number of bikes produced and sold	500	770	900
Total costs
Variable costs	$ 118,500	$ ?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	$ 530.75	?Question mark

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 $680.

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

Answer & Explanation Solved by verified expert

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member