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.)