FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Hermosa, Incorporated produces one model of mountain bike. Partial information for the company follows:
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 Required 2 Required 4
Number of bikes produced and sold
Complete this question by entering your answers in the tabs below.
Complete the table.
Note: Round your "Cost per Unit" answers to 2 decimal places.
Total costs
Variable costs
Fixed costs per year
Total costs
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 assumin
the company sells each bike for $700.
4. Calculate Hermosa's break-even point in units and sales revenue.
Variable cost per unit
$ 121,160
Fixed cost per unit
520
Total cost per unit
520 Units
?
$ 121.160
810 Units
810
520.75
$?
$520.75
990
990 Units
$?
?
2
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Transcribed Image Text:Hermosa, Incorporated produces one model of mountain bike. Partial information for the company follows: 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 Required 2 Required 4 Number of bikes produced and sold Complete this question by entering your answers in the tabs below. Complete the table. Note: Round your "Cost per Unit" answers to 2 decimal places. Total costs Variable costs Fixed costs per year Total costs 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 assumin the company sells each bike for $700. 4. Calculate Hermosa's break-even point in units and sales revenue. Variable cost per unit $ 121,160 Fixed cost per unit 520 Total cost per unit 520 Units ? $ 121.160 810 Units 810 520.75 $? $520.75 990 990 Units $? ? 2
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