Question

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.)**

Answer #1

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 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"...

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:
Number of bikes produced and
sold
520
850
950
Total costs
Variable costs
$
129,480
$
?
$
?
Fixed costs per year
?
?
?
Total costs
?
?
?
Cost per unit
Variable cost per unit
?
?
?
Fixed cost per unit
?
?
?
Total cost per unit
?...

Presidio, Inc., produces one model of mountain bike. Partial
information for the company follows:
Required: 1. Complete Presidio’s cost data table.
Bikes Produced and sold
730 Units
850 units
1868 units
Total Cost
Variable cost per year
$182,500
$212,500
$467,000
Fixed Cost per year
?
?
?
Total Cost
$
$
$
Cost per unit
Variable Cost per unit
$250
$250
$250
Fixed Cost per unit
?
?
?
Total cost per unit
$
$
$
I don't know how...

Riverside Inc. makes one model of wooden canoe. Partial
information for it follows:
Number of Canoes Produced and Sold
470
620
770
Total costs
Variable costs
$
66,740
?
?
Fixed costs
149,400
?
?
Total costs
$
216,140
?
?
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.) ...

Riverside Inc. makes one model of wooden canoe. Partial
information for it follows:
Number of Canoes Produced and Sold
550
750
900
Total costs
Variable costs
$
107,250
$
146,250
$
175,500
Fixed costs
247,500
247,500
247,500
Total costs
$
354,750
$
393,750
$
423,000
Cost per unit
Variable cost per unit
$
195.00
$
195.00
$
195.00
Fixed cost per unit
450.00
330.00
275.00
Total cost per unit
$
645.00
$
525.00
$
470.00
Riverside sells its canoes for...

Riverside Inc. makes one model of wooden canoe. Partial
information for it follows:
Number of Canoes Produced and Sold
505
655
805
Total costs
Variable costs
$
66,660
?
?
Fixed costs
148,400
?
?
Total costs
$
215,060
?
?
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.)...

Riverside Inc. makes one model of wooden canoe. Partial
information for it follows:
Number of Canoes Produced and Sold
515
665
815
Total costs
Variable
costs
$
69,525
?
?
Fixed costs
149,600
?
?
Total costs
$
219,125
?
?
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.) ...

Riverside Inc. makes one model of wooden canoe. Partial
information for it follows:
Number of Canoes Produced and Sold
550
700
850
Total costs
Variable costs
$
73,150
?
?
Fixed costs
149,700
?
?
Total costs
$
222,850
?
?
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.) ...

Sandy Bank, Inc., makes one model of wooden canoe. Partial
information is given below.
Required:
1. Complete the following table.
2. Suppose Sandy Bank sells its canoes for $550
each. Calculate the contribution margin per canoe and the
contribution margin ratio.
3. This year Sandy Bank expects to sell 830
canoes. Prepare a contribution margin income statement for the
company.
4. Calculate Sandy Bank’s break-even point in
units and in sales dollars.
5. Suppose Sandy Bank wants to earn $81,000...

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