1. Complete the table. (Round your \"Cost per Unit\" answers to 2 decimal places
ID: 2482051 • 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
Complete the table. (Round your "Cost per Unit" answers to 2 decimal places.) Number of Bikes Produced and Sold 510 770 900 Total Costs: Variable Costs 126480 190960 223200 Fixed Costs 221568 221568 221568 Total Costs 348048 412528 444768 Costs per Unit: Variable Costs per Unit 248.00 248.00 248.00 Fixed Costs per Unit 434.45 287.75 246.19 Total Costs per Unit 682.45 535.75 494.19 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.) 510 Units 770 Units 900 Units Contribution Margin Ratio 64.57% % 64.57% % 64.57% % Total Contribution Margin 230,520 348,040 406,800 3.Calculate Hermosa’s break-even point in units and sales revenue. (Round your "Unit" and "Sales Dollars" answers to the nearest whole number.) Break-Even Units 491 Bikes Break-Even Sales Revenue 344400 $
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