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PA6-4 Analyzing Break-Even Point, Target Profit, Degree of Operating Leverage [LO 6-1, 6-2, 6-51 Ramada Company produces one golf cart model. A partially complete table
PA6-4 Analyzing Break-Even Point, Target Profit, Degree of Operating Leverage [LO 6-1, 6-2, 6-51 Ramada Company produces one golf cart model. A partially complete table of company costs follows: Required: 1. Complete the table. (Round your Cost per Unit answers to 2 decimal places.) Number of Golf Carts Produced and Sold 600 Units 800 Units 1000 Units Total costs 400,000 Variable costs 250,000 Fixed costs per year 0 650,000 0 Total costs Cost per unit Variable cost per unit Fixed cost per unit 0.00 Total cost per unit 0.00 0.00 2. Ramada sells its carts for $1,200 each. Prepare a contribution margin income statement for each of the three production levels given in the table. Golf Carts Produced and Sold 600 units 800 units 1,000 units Sales Revenue Variable Costs Contribution Margin Fixed Costs Income from operations
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