Answered step by step
Verified Expert Solution
Question
...
1 Approved Answer
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
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 Presidio's cost data table. (Round your Cost per Unit answers to 2 decimal places.) 390 Units 770 Units 1560 Units Bikes Produced and Sold Total costs Variable costs $ 124,8001 Fixed costs per year Total costs Cost per unit Variable cost per unit Fixed cost per unit Total cost per unit $ 541.00 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. (Round your Margin Ratio percentage answers to 2 decimal places (i.e. 1234 should be entered as 12.34%.)) 390 Units 770 Units 1560 Units Total Contribution Margin Contribution Margin Ratio 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.) 390 Units 770 Units 1560 Units Net Operating Income (Loss)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started