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: 400 500 600 $ ? 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 ? ? ? $380,000 180,000 560,000 ? ? ? ? ? ? ? ? Required: 1. Complete the table. 2. Ramada sells its carts for $1,900 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. 8. Using the degree of operating leverage, calculate the change in Ramada's profit if sales are 20 percent less than expected. 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.) Number of Golf Carts Produced and Sold 400 Units 500 Units 600 Units Total costs Variable costs $ 380,000 $ 380,000 $ 380,000 Fixed costs per year 180,000 Total costs $ 380,000 $ 560,000 $ 380,000 Cost per unit Variable cost per unit Fixed cost per unit Total cost per unit $ 0.00 $ 0.00 $ 0.00 Required 1 Required 2 Required 1 Required 2 Required 4 Required 5 Required 6 Required 7 Required 8 Ramada sells its carts for $1,900 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 Contribution Margin Income from Operations 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 Carts Break-Even Sales Revenue Required 2 Required 5 Required 1 Required 2 Required 4 Required 5 Required 6 Required 7 Required 8 Calculate the number of carts that Ramada must sell to earn $48,000 profit. Target Unit Sales Carts