1. Complete the table. (Round your \"Cost per Unit\" answers to 2 decimal places
ID: 2480340 • Letter: 1
Question
1. Complete the table. (Round your "Cost per Unit" answers to 2 decimal places.)
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 $700. (Round your answers to 2 decimal places.)
3.Calculate Hermosa’s break-even point in units and sales revenue. (Round your "Unit" and "Sales Dollars" answers to the nearest whole number.)
Hermosa, Inc., produces one model of mountain bike. Partial information for the company follows:Explanation / Answer
Number of bikes produced and sold 510 770 900 Total costs 248 Variable costs $ 126480 $ 190960 $ 223200 Fixed costs per year 146752.5 221567.5 258975 Total costs 273232.5 412527.5 482175 Cost per unit Variable cost per unit 248 248 248 Fixed cost per unit 287.75 287.75 287.75 Total cost per unit 535.75 $ 535.75 535.75 answer no 2 units 510 770 900 sales 357000 539000 630000 variable cost 126480 190960 223200 Contribution Margin Ratio 0.64571429 % 0.64571429 % 0.64571429 % Total Contribution Margin 230520 348040 406800 total fixed cost 146752.5 221567.5 258975 answer no 3 units 510 770 900 Break even Point in units fixed cost/contribution per unit 893.47032 1348.965 1576.71233 break even in sales fixed cost/ contribution margin ratio 227271.571 343135.5 401067.478
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