Question

Hermosa, Inc., produces one model of mountain bike. Partial information for the company follows: Number of bikes produced and sold 480 820 970 Total costs Variable costs $ 115,680 $ ? $ ? Fixed costs per year ? ? ? Total costs ? ? ? Cost per unit Variable cost per unit ? ? ? Fixed cost per unit ? ? ? Total cost per unit ? $ 534.75 ? Required: 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 $800. (Round your percentage answers to 2 decimal places. (i.e. .1234 should be entered as 12.34%.)) 4. Calculate Hermosa’s break-even point in units and sales revenue. (Round your answers to the nearest whole number.) ReferenceseBook & Resources

Answer #1

Number of Bikes Produced | 480 | 820 | 970 |

Total Costs | |||

Variable Costs | $115,680.00 | $197,620.00 | $233,770.00 |

Fixed Costs Per Year | $240,875.00 | $240,875.00 | $240,875.00 |

Total Costs | $356,555.00 | $438,495.00 | $474,645.00 |

Cost Per Unit | |||

Variable Cost Per Unit | $241.00 | $241.00 | $241.00 |

Fixed Cost Per Unit | $501.82 | $293.75 | $248.32 |

Total Cost Per Unit | $742.82 | $534.75 | $489.32 |

2 | |||

480 | 820 | 970 | |

Contribution Margin Ratio | 69.88% | 69.88% | 69.88% |

Total Contribution Margin | 268320 | 458380 | 542230 |

3 | |||

Break Even Units =240875/(800-241)= 431 | |||

Sales Revenue =240875/69.88%= $344698 or $344723 |

Hermosa, Inc., produces one model of mountain bike. Partial
information for the company follows:
Number of bikes produced and sold
500
820
960
Total costs
Variable costs
$
118,500
$
?
$
?
Fixed costs per year
?
?
?
Total costs
?
?
?
Cost per unit
Variable cost per unit
?
?
?
Fixed cost per unit
?
?
?
Total cost per unit
?
$
518.75
?
Required:
1. Complete the table. (Round
your "Cost...

Hermosa, Inc., produces one model of mountain bike. Partial
information for the company follows:
Number of bikes produced and sold
520
800
920
Total costs
Variable costs
$
121,160
$
?
$
?
Fixed costs per year
?
?
?
Total costs
?
?
?
Cost per unit
Variable cost per unit
?
?
?
Fixed cost per unit
?
?
?
Total cost per unit
?
$
508.75
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Required:
1. Complete the table. (Round
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520
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Total costs
Variable costs
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$
?
$
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Fixed costs per year
?
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?
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Fixed cost per unit
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?
?
Total Cost
$
$
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Total cost per unit
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470
620
770
Total costs
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Fixed costs
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Total costs
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$
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195.00
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Number of Canoes Produced and Sold
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Total costs
Variable costs
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Fixed costs
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Fixed cost per unit
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Total cost per unit
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Riverside Inc. makes one model of wooden canoe. Partial
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Fixed cost per
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