Hermosa, Inc., produces one model of mountain bike. Partial information for the company follows: Number of bikes produced and sold 490 830 970 Total costs Variable costs $ 113,190 $ ? $ ? Fixed costs per year ? ? ? Total costs ? ? ? Cost per unit Variable cost per unit ? ? ? Fixed cost per unit ? ? ? Total cost per unit ? $ 507.75 ? Required: 1. Complete the table. 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 $730. 4. Calculate Hermosa’s break-even point in units and sales revenue.

Hermosa, Inc., produces one model of mountain bike. Partial information for the company follows: Number of bikes produced and sold 490 830 970 Total costs Variable costs $ 113,190 $ ? $ ? Fixed costs...

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


Number of bikes produced and sold		490		830		970
Total costs
Variable costs	$	113,190	$	?	$	?
Fixed costs per year		?		?		?
Total costs		?		?		?
Cost per unit
Variable cost per unit		?		?		?
Fixed cost per unit		?		?		?
Total cost per unit		?	$	507.75		?

Required:

1. Complete the table.

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 $730.

4. Calculate Hermosa’s break-even point in units and sales revenue.

Jun 09, 2022

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Hermosa, Inc., produces one model of mountain bike. Partial information for the company follows: Number of bikes produced and sold 490 830 970 Total costs Variable costs $ 113,190 $ ? $ ? Fixed costs...

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