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: 400 600 800 $ Number of golf carts produced and sold Total costs Variable costa Fixed costs per year Total costa Cost per unit Variable cost per unit Fixed cost per unit Total cost per unit 2 ? 2 $264,000 96,000 360,000 2 2 2 ? 2 2 2 ? 2 2 2 Required: 1. Complete the table. 2. Ramada sells its carts for $1100 each. Prepare a contribution margin income statement for each of the three produttion levels given In the table. 4. Calculate Ramada's break-even point in number of units and in sales revenue, 5. Assume Ramada sold 150 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 $49,200 profit. 7. Calculate Ramada's degree of operating leverage if it sells 650 carts. 8. Using the degree of operating leverage calculate the change in Ramada's profit if sales are 10 percent less than expected. Complete this question by entering your answers in the tabs below. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 4 Required 5 Required 6 Required 7 Required 8 Complete the table. (Round your "Cost per Unit" answers to 2 decimal places.) 400 Units 600 Units 800 Units $ 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 264,000 96,000 360,000 $ $ 0 $ 0 $ 0.00 $ 0.00 $ 0.00 Required Required 2 > degree of operating leverage, calculate the change in Ramada's profit if sales are 10 percent less tha Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 4 Required 5 Required 6 Required 7 Required 8 Ramada sells its carts for $1,100 each. Prepare a contribution margin income statement for each of the three productiu levels given in the table. Golf Carts Produced and Sold 400 units 600 units 800 units Cost of Goods Sold Fixed Costs Gross Margin Interest Expense Net Income After Taxes Income from Operations Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 4 Required 5 Required 6 Required 7 Required 8 Ramada sells its carts for $1,100 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 600 units 800 units Interest Expense Net Income After Taxes Net Operating Income Sales Revenue Variable Costs Income from Operations Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 4 Required 5 Required 6 Required 7 Required 8 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.) Break-Even Units Break-Even Sales Revenue Carts 1. Complete the table. 2. Ramada sells its carts for $1,100 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 150 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 $49,200 profit. 7. Calculate Ramada's degree of operating leverage if it sells 650 carts. 8. Using the degree of operating leverage, calculate the change in Ramada's profit if sales are 10 percent less than expected. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 4 Required 5 Required 6 Required 7 Required 8 Using the degree of operating leverage, calculate the change in Ramada's profit if sales are 10 percent less than expected. (Round your answer to 3 decimal places. (l.e. 12345 should be entered as 12.345%.)) Effect on Profit %
