PA6-4 (Algo) Analyzing Break-Even Point, Target Profit, Degree of Operating Leverage [ LO 6-1, 6-2, 6-5] Ramada Company produces one golf cart model. A partially complete table of company costs follows: Required: 1. Complete the table. 2. Ramada sells its carts for $1,950 each. Prepare a contribution margin income statement for each of the three production levels given in the table. 4. Calculate Ramada's break-even point in number of units and in sales revenue. Ramada sells its carts for \$1,950 each. 5. Assume Ramada sold 300 carts last year. Without performing any calculations, determine whether Ramada earned a profit last year. 6. Calculate the number of carts that Ramada must sell to earn $52,500 profit. Ramada sells its carts for $1,950 each. 7. Calculate Ramada's degree of operating leverage if it sells 850 carts. Ramada sells its carts for $1,950 each. 8. Using the degree of operating leverage, calculate the change in Ramada's profit if sales are 20 percent less than expected. Complete this question by entering your answers in the tabs below. Complete the table. Note: Round your "Cost per Unit" answers to 2 decimal places. Complete this question by entering your answers in the tabs below. Ramada sells its carts for $1,950 each. Prepare a contribution margin income statement for each of the three production levels given in the table. Complete this question by entering your answers in the tabs below. Calculate Ramada's break-even point in number of units and in sales revenue. Ramada sells its carts for $1,950 each. Note: Do not round your intermediate calculations. Round your "Unit" and "Sales Revenue" answers to the nearest whole number. Complete this question by entering your answers in the tabs below. Assume Ramada sold 300 carts last year. Without performing any calculations, determine whether Ramada earned a profit last year. Complete this question by entering your answers in the tabs below. Calculate the number of carts that Ramada must sell to earn $52,500 profit. Ramada sells its carts for $1,950 each. Note: Do not round your intermediate calculations. Complete this question by entering your answers in the tabs below. Calculate Ramada's degree of operating leverage if it sells 850 carts. Ramada sells its carts for $1,950 each. Note: Do not round your intermediate calculations. Round your answer to 4 decimal places. Complete this question by entering your answers in the tabs below. Using the degree of operating leverage, calculate the change in Ramada's profit if sales are 20 percent less than expected. Note: Do not round your intermediate calculations. Round your answer to 3 decimal places. (1.e. 0.12345 should be entered as 12.345%.)
