Question: 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

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: 980 510 $ 120,870S 830 ? . 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 Required: 1. Complete the table. (Round your "Cost per Unit" answers to 2 decimal places.) 510 Units 830 Units 960 Units Number of bikes produced and sold Total costs Variable costs $ 120.8701 Fixed costs per year Total costs Cost per unit Variable cost per unit Fixed cost per unit Total cost per unit 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 $800. (Round your percentage answers to 2 decimal places. i.e. 1234 should be entered as 12.34%.)) 510 Units 830 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 Break-Even Sales Revenue
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
