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 $640.

Calculate net operating income (loss) at each of the sales levels assuming a sales price of $640.