Question: PA6-1 Calculating Contribution Margin, Contribution Margin Ratio, Break-Even Point [LO 6-1, 6-2 Henmosa, Inc., produces one model of mountain bke. Partial infonmation for the company

 PA6-1 Calculating Contribution Margin, Contribution Margin Ratio, Break-Even Point [LO 6-1,

PA6-1 Calculating Contribution Margin, Contribution Margin Ratio, Break-Even Point [LO 6-1, 6-2 Henmosa, Inc., produces one model of mountain bke. Partial infonmation for the company follows 970 Number of bikes produced and sold Total cost 850 arable costs Fxed costs per yea 118.50 Total costs Cost per unit nable cost per unit Foxed cost per unit Total cost per unit S 524.75 Required: 1. Complete the table. (Round your "Cost per Unit" answers to 2 decimal places.) of bikes and sold 490 Units 850 Units 970 Units Total costs Verisble costs 5 118.580 Foed costs per year Total costs 3 118.560 Coat par unt Variable coat per unit Fooed coat per unit Total cost per unit 0.00 S 524.75 S 0.00 2. Calculate Hermosas contribution margin ratio and its total contri or margin a e sales level indicated in the table assuming the comp any se s each bike r S750 Round your percentage answers to 2 decr al places (i e 1234 should be entered as 12.34% 490 Units 850 Units 970 Units Contribution Margin Ratio Total Contribuion Margin 4. Calculate Hermosa's break-even point in units and sales revenue. (Round your answers to the ncarest whole number.) Break-Even Units Bikes Break-Even Sales Revenue

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!