CM, CM ratio, break even point

PA6-1 Calculating Contribution Margin, Contribution Margin Ratio, Break-Even Point [LO 6-1, 6-2] Hermosa, Inc., produces one model of mountain bike. Partial information for the company follows: 480 790 960 $ Number of bikes produced and sold Total costs Variable costs Fixed costs per year Total costs Cost per unit Variable cost per unit Fixed cost per unit Total cost per unit $ 110,400 2 7 ? ? 7 $ ? 2 7 2 2 ? ? 2 $ 505.75 ? 2 ? Required: 1. Complete the table. (Round your "Cost per Unit" answers to 2 decimal places.) Number of bikes produced and sold 480 Units 790 Units 960 Units Total costs Variable costs $ 110,400 Fixed costs per year Total costs $ 110,400 $ 0 $ 0 Cost per unit Variable cost per unit Fixed cost per unit Total cost per unit $ 0.00 $ 505.75 $ 0.00 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 $760. (Rour your percentage answers to 2 decimal places. (1.0..1234 should be entered as 12.34%.)) 480 Units 790 Units 960 Units % % % Contribution Margin Ratio Total Contribution Margin 4. Calculate Hermosa's break-even point in units and sales revenue. (Round your answers to the nearest whole number.) Break-Even Units Bikes Break-Even Sales Revenue References eBook & Resources Worksheet Difficulty: 3 Hard Learning Objective: 05-02 Use cost-volume-profit analysis to determine the sales needed to achieve a targat pro PA6-1 Calculating Contribution Margin, Contribution Margin Ratio, Break-Even Point (LO 6-1, 6- 2) Learning Objective: 06-01 Use cost- volume-profit analysis to find the break-even point MacBook Air