Solution-Calculate hermosas contribution margin ratio

Calculate hermosas contribution margin ratio

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Reference no: EM131805299

Assignment

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

Number of bikes produced and sold		400		800		1,000
Total costs
Variable costs	$	125,000	$	?	$	?
Fixed costs per year		?		?		?
Total costs		?		?		?
Cost per unit
Variable cost per unit		?		?		?
Fixed cost per unit		?		?		?
Total cost per unit		?	$	543.75		?

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 $650. (Round your answers to 2 decimal places.)

Reference no: EM131805299

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Calculate hermosas contribution margin ratio

Reference no: EM131805299

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