HP PA6-4 (Algo) Analyzing Break-Even Point, Target Profit, Degree of Operating Leverage (LO 6-1, 6-2, 6-5) Ramada Company produces one golf cart model. A partially complete table of company costs follows: 600 800 1,000 $ $ Number of golf carts produced and sold Total costs Variable costs Fixed costs per year Total costs Cost per unit Variable cost per unit Fixed cost per unit Total cost per unit ? ? ? $624,000 240,000 864,000 2 2 2 Required: 1. Complete the table. 2. Ramada sells its carts for $1,950 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 Ramada sold 300 carts last year. Without performing any calculations, determine whether Ramada earned a profit last year. 6. Calculate the number of carts that Ramada must sell to earn $52,500 profit. 7. Calculate Ramada's degree of operating leverage if it sells 850 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 1 Required 2 Required 4 Required 5 Required 6 Required 7 Required 8 Complete the table. (Round your "Cost per Unith answers to 2 decimal places.) Number of Golf Carts Produced and Sold 600 Units 800 Units 1.000 Units Pros Homework WU 5. Assume Ramada sold 300 carts last year. Without performing any calculations, determine whether Ramada earned a profit last year 6. Calculate the number of carts that Ramada must sell to earn $52,500 profit. 7. Calculate Ramada's degree of operating leverage if it sells 850 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 1 Required 2 Required 4 Required 5 Required 6 Required 7 Required 8 Complete the table. (Round your Cost per Unit" answers to 2 decimal places.) Number of Golf Carts Produced and Sold 600 Units BOO Units 1,000 Units Total costs Variable costs Fixed costs per year $ 624 000 240,000 864.000 $ 0 $ S 0 Total costs Cost per unit Variable cost per unit Fixed cost per unit Total cost per unit $ 0.00 $ 0.00 0.00 Round Required 2 > HomewuIR1 Sowed 5. Assume Ramada sold 300 carts last year. Without performing any calculations, determine whether Ramada earned a profit last yea 6. Calculate the number of carts that Ramada must sell to earn $52,500 profit. 7. Cal te Ra 's degree of operating leverage if it sells 850 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 1 Required 2 Required 4 Required 5 Required 6 Required 7 Required 8 Ramada sells its carts for $1,950 each. Prepare a contribution margin income statement for each of the three production levels given in the table. Golf Carts Produced and Sold 600 units 800 units 1000 units 5 Contribution Margin Income from Operations mework 1 SOVU Hels Total cost per unit 2 2 2 Required: 1. Complete the table. 2. Ramada sells its carts for $1,950 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 Ramada sold 300 carts last year. Without performing any calculations, determine whether Ramada earned a profit last year 6. Calculate the number of carts that Ramada must sell to earn $52,500 profit. 7. Calculate Ramada's degree of oerating leverage if it sells 850 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 1 Required 2 Required 4 Required 5 Required 6 Required 7 Required 8 Calculate Ramada's break-even point in number of units and in sales revenue. (Round your "Unit" and "Sales Revenue" answers to the nearest whole number:) Break-Even Units Carts Break-Even Sales Revenue 2 864,000 2 Total costs Cost per unit Variable cost per unit Fixed cost per unit Total cost per unit ? 2 2 7 2 2 Required: 1. Complete the table. 2. Ramada sells its carts for $1,950 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 Ramada sold 300 carts last year. Without performing any calculations, determine whether Ramada earned a profit last year. 6. Calculate the number of carts that Ramada must sell to earn $52,500 profit. 7. Calculate Ramada's degree of operating leverage if it sells 850 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 1 Required 2 Required 4 Required 5 Required 6 required Required 8 Calculate Ramada's degree of operating leverage if it sells 850 carts. (Round your answer to 4 decimal places.) Degree of Operating Leverage 2 Cost per unit Variable cost per unit Fixed cost per unit Total cost per unit ? 2 2 7 2 ? ? Required: 1. Complete the table. 2. Ramada sells its carts for $1,950 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 Ramada sold 300 carts last year. Without performing any calculations, determine whether Ramada earned a profit last year. 6. Calculate the number of carts that Ramada must sell to earn $52,500 profit. 7. Calculate Ramada's degree of operating leverage if it sells 850 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 1 Required 4 Required 2 Required 5 Required 8 Required 6 Required 7 Using the degree of operating leverage, calculate the change in Ramada's profit if sales are 2 percent less than expected. (Round your answer to 3 decimal places. (l.e. .12345 should be entered as 12.345%.)) Effect on Profit %