Question

# Hermosa, Inc., produces one model of mountain bike. Partial information for the company follows:      Number...

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 ?

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 \$700. (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.)

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