Question
560-71 Target, Inc., produces one model of scooter. Partial information for the company follows: Units produced and sold 625 units 800 units 1050 units Total
560-71
Target, Inc., produces one model of scooter. Partial information for the company follows:
Units produced and sold | 625 units | 800 units | 1050 units |
Total costs | $125,000 |
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Variable costs |
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Fixed costs per year |
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Total costs |
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Cost per unit |
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variable |
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fixed |
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| $261.9 |
Required: 1. Complete Targets cost data table. 2. Calculate Targets contribution margin ratio and its total contribution margin at each sales level indicated in the cost data table assuming the company sells each bike for $650. 3. Calculate net operating income at each of the sales levels assuming a sales price of $650.
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