Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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.

Complete this question by entering your answers in the tabs below.

  • Required 1
  • Required 2
  • Required 3

Complete Presidios cost data table. (Round your Cost per Unit answers to 2 decimal places.)

Bikes Produced and Sold 730 Units 870 Units 1,392 Units
Total costs
Variable costs $189,800
Fixed costs per year
Total costs $189,800 $0 $0
Cost per unit
Variable cost per unit
Fixed cost per unit
Total cost per unit $0.00 $536.00 $0.00
  • REQ 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. (Round your Contribution Margin Ratio percentage answers to 2 decimal places (i.e. .1234 should be entered as 12.34%.))

730 Units 870 Units 1,392 Units
Total Contribution Margin
Contribution Margin Ratio % % %

REQ 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 870 Units 1,392 Units
Net Operating Income

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

Students also viewed these Accounting questions