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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
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: 4ee See see $ Number of golf carts produced and sold Total costs Variable costs Fixed costs per year Total costs Cost per unit Variable cost per unit Fixed cost per unit Total cost per unit 52 > 2 $280,eee 120, eee 400,00 Required: 1. Complete the table. 2. Ramada sells its carts for $1.400 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. 5. Assume Ramada sold 200 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 $48.000 profit. 7. Calculate Ramada's degree of operating leverage if it sells 550 carts 9. Using the degree of operating leverage calculate the change in Ramada's profit if sales are 15 percent less than expected Complete the table. (Round your "Cost per Unit" answers to 2 decimal places.) 400 Units 500 Units 600 Units Number of Golf Carts Produced and Sold Total costs Variable costs Forced costs per year Total costs $ 280.000 120.000 400,000 S $ 0 $ 0 Cost per unit Variable cost per unit Fored cost per unit Total cost per unit $ 0.00 $ 0.00 $ 0.00 Ramada sells its carts for $1,400 each. Prepare a contribution margin income statement for each of the three production levels given in the table. Golf Carts Produced and Sold 400 units 500 units 600 units Sales Revenue Variable costs Contribution Margin Fixed Costs Income from Operations Calculate Ramada's break-even point in number of units and in sales revenue. (Round your "Unit" and "Sales Revenue" answers to the nearest whole number.) Carts Break-Even Units Break-even Sales Revenue
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