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PA5-5 (Algo) Predicting Cost Behavior, Calculating Contribution Margin and Contribution Margin Ratio, Calculating Profit [LO 5-1, 5-5] Presidio, Incorporated, produces one model of mountain bike.
PA5-5 (Algo) Predicting Cost Behavior, Calculating Contribution Margin and Contribution Margin Ratio, Calculating Profit [LO 5-1, 5-5]
Presidio, Incorporated, produces one model of mountain bike. Partial information for the company follows:
Required:
- Complete Presidios cost data table.
- 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 $630.
- Calculate net operating income (loss) at each of the sales levels assuming a sales price of $630.
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