Answered step by step
Verified Expert Solution
Link Copied!

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

image text in transcribed

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.) 430 Units 850 Units 1862 Units Bikes Produced and Sold Total costs Variable costs $ 137,600 Fixed costs per year Total costs Cost per unit Variable cost per unit Fixed cost per unit Total cost per unit $ 538.00 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 $630. (Round your Margin Ratio percentage answers to 2 decimal places (.e. .1234 should be entered as 12.34%.)) 430 Units 850 Units 1862 Units Total Contribution Margin Contribution Margin Ratio % % % 3. Calculate net operating income (loss) at each of the sales levels assuming a sales price of $630. (Round your answers to the nearest whole dollar amount.) 430 Units 850 Units 1862 Units Net Operating Income (Loss)

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

Recommended Textbook for

Financial Accounting And Reporting

Authors: Barry Elliott, Jamie Elliott

11th Edition

0273708708, 9780273708704

More Books

Students also viewed these Accounting questions

Question

What is the formula to calculate the mth Fibonacci number?

Answered: 1 week ago