Question
PA5-4 (Algo) Predicting Cost Behavior, Calculating Contribution Margin and Contribution Margin Ratio, Calculating Profit [LO 5-1, 5-5] Presidio, Inc., produces one model of mountain bike.
PA5-4 (Algo) Predicting Cost Behavior, Calculating Contribution Margin and Contribution Margin Ratio, Calculating Profit [LO 5-1, 5-5]
Presidio, Inc., produces one model of mountain bike. Partial information for the company follows: Required: 1. Complete Presidios cost data table. 2. Calculate Presidios 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 $640. 3. Calculate net operating income (loss) at each of the sales levels assuming a sales price of $640.
Required 1 Required 2 Required 3 Complete Presidio's cost data table. (Round your Cost per Unit answers to 2 decimal places.) 730 Units 890 Units 1,688 Units $ 189,800 Bikes 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 $ 189,800 $ 0 $ 0 0.00 $ 547.00 $ 0.00 Required 1 Required 2 Required 3 Calculate Presidio's 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 $640. (Round your contribution Margin Ratio percentage answers to 2 decimal places (i.e. .1234 should be entered as 12.34%.)) 730 Units 890 Units 1,688 Units Total Contribution Margin Contribution Margin Ratio % % Required 1 Required 2 Required 3 Calculate net operating income (loss) at each of the sales levels assuming a sales price of $640. (Round your answers to the nearest whole dollar amount.) 730 Units 890 Units 1,688 Units Net Operating IncomeStep by Step Solution
There are 3 Steps involved in it
Step: 1
To solve the problem well follow the steps below Step 1 Complete Presidios Cost Data Table 730 Units ...Get Instant Access to Expert-Tailored Solutions
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Step: 2
Step: 3
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