PA5-4 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. (Round your Cost per Unit answers to 2 decimal places.) 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 $610. (Round your Margin Ratio percentage answers to 2 decimal places (i.e. .1234 should be entered as 12.34%.)) 3. Calculate net operating income (loss) at each of the sales levels assuming a sales price of $610. (Round your answers to the nearest whole dollar amount.)

Required 1.Complete Presidio's cost data table. (Round your Cost per Unit answers to 2 decimal places.) Bikes Produced and Sold 490 Units 870 870 Units 1098 Units Total costs 147,000 Variable costs Fixed costs per year 147,000 Total costs Cost per unit Variable cost per unit Fixed cost per unit 0.00560.000.00 2. 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 $610. (Rounc Margin Ratio percentage answers to 2 decimal places (Le. .1234 should be entered as 12.34% 870 Units 1098 Units 490 Units Total Contribution Margin Contribution Margin Ratic