Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

help asap Ramada Company produces one golf cart model. A partially complete table of company costs follows: 800 1,000 1,200 $ $ ? 2 2

help asap image text in transcribed
Ramada Company produces one golf cart model. A partially complete table of company costs follows: 800 1,000 1,200 $ $ ? 2 2 $ 700,000 240,000 940,000 2 ? ? Number of golf carts produced and sold Total costs Variable costs Fixed costs per year Total costs Cost per unit Variable cost per unit Pixed cost per unit Total cost per unit ? 2 2 ? 2 ? 2 Required: 1. Complete the table. 2. Ramada sells its carts for $1.750 each. Prepare a contribution margin income statement for each of the three production levels given in the table. 4. Calculate Ramada's break-even point in number of units and in sales revenue. 5. Assume Romada sld 300 carts last year. Without performing any calculations, determine whether Ramada earned a profit last year. 6. Calculate the numider of carts that Ramada must sell to earn $22,500 profit. 7. Calculate Ramada's degree of operating leverage if it sells 1,050 carts. 8. Using the degree of operating leverage, calculate the change in Ramada's profit if sales are 20 percent less than expected. Complete this question by entering your answers in the tabs below. Required 5 Required 6 Required 7 Required 8 Required 1 Required 2 Required 4 Complete the table. (Round your "Cost per Unit" answers to 2 decimal places.) 800 Units 1,000 Units 1,200 Units Number of Golf Carts Produced and Sold $ Total costs Variable costs Fixed costs per year 700,000 240.000 940,000 $ $ 0 $ 0 Total costs Cost per unit Variable cost per unit Fixed cost per unit Total cost per unit $ 0.00 $ 0.00 0.00 $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fire Extinguisher Log Book

Authors: Arahan Khan

1st Edition

B09TZKR5Z4, 979-8428924282

More Books

Students also viewed these Accounting questions

Question

What is meant by 'Wealth Maximization ' ?

Answered: 1 week ago