PA6-1 (Algo) Calculating Contribution Margin, Contribution Margin Ratio, Break-Even Point (LO 6-1, Hermosa, Incorporated produces one model of mountain bike. Partial information for the company follows: Number of bikes produced and sold 510 910 Total costs $ 124,440 Variable costs Fixed costs per year Total costs Cost per unit Variable cost per unit Fixed cost per unit Total cost per unit 770 $ 519.75 Required: 1. Complete the table. 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. 4. Calculate Hermosa's break-even point in units and sales revenue.
PA6-1 (Algo) Calculating Contribution Margin, Contribution Margin Ratio, Break-Even Point (LO 6-1, Hermosa, Incorporated produces one model of mountain bike. Partial information for the company follows: Number of bikes produced and sold 510 910 Total costs $ 124,440 Variable costs Fixed costs per year Total costs Cost per unit Variable cost per unit Fixed cost per unit Total cost per unit 770 $ 519.75 Required: 1. Complete the table. 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. 4. Calculate Hermosa's break-even point in units and sales revenue.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![PA6-1 (Algo) Calculating Contribution Margin, Contribution Margin Ratio, Break-Even Point [LO 6-1, 6-2]
Hermosa, Incorporated produces one model of mountain bike. Partial information for the company follows:
Number of bikes produced and sold
Total costa
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..
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.
4. Calculate Hermosa's break-even point in units and sales revenue.
Number of bikes produced and sold
Complete this question by entering your answers in the tabs below.
Required 1 Required 2 Required 4
Complete the table.
Note: Round your "Cost per Unit" answers to 2 decimal places.
510 Units
Total costs
Variable costs
Fixed costs per year
Total costs
Cost per unit
510
$ 124,440
Variable cost per unit
Fixed cost per unit
Total cost per unit
$
7
124.440
770 Units
S
770
$519.75
519.75
910 Units
910
Required 2 >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F603cba53-c62d-4eab-9eb1-bca52611cd12%2F55b86494-87e8-443b-8b1b-22bcd5b6fe29%2Fwbo452q_processed.png&w=3840&q=75)
Transcribed Image Text:PA6-1 (Algo) Calculating Contribution Margin, Contribution Margin Ratio, Break-Even Point [LO 6-1, 6-2]
Hermosa, Incorporated produces one model of mountain bike. Partial information for the company follows:
Number of bikes produced and sold
Total costa
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..
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.
4. Calculate Hermosa's break-even point in units and sales revenue.
Number of bikes produced and sold
Complete this question by entering your answers in the tabs below.
Required 1 Required 2 Required 4
Complete the table.
Note: Round your "Cost per Unit" answers to 2 decimal places.
510 Units
Total costs
Variable costs
Fixed costs per year
Total costs
Cost per unit
510
$ 124,440
Variable cost per unit
Fixed cost per unit
Total cost per unit
$
7
124.440
770 Units
S
770
$519.75
519.75
910 Units
910
Required 2 >
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