Overhill, Inc., produces one model of mountain bike

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

Requirement 1:
Complete Overhill’s cost data table. (Round your answers to 2 decimal places. Omit the “$” sign in your response.)

 

Cost Data
Number of bikes produced and sold 400 800 1,000
Total costs
Variable costs $ 125,000.00 $ $
Fixed costs per year
Total costs $ $ $
Cost per unit
Variable cost per unit $ $ $
Fixed cost per unit
Total cost per unit $ $ 543.75

 

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.)

Calculate Hermosa’s break-even point in units and sales revenue. (Round your “Unit” and “SalesRevenue” answers to the nearest whole number.)

Here’s the SOLUTION

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