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Presidio, Inc., produces one model of mountain bike. Partial information for the company follows: Required: 1. Complete Presidios cost data table. Bikes Produced and sold
Presidio, Inc., produces one model of mountain bike. Partial information for the company follows:
Required: 1. Complete Presidios cost data table.
Bikes Produced and sold | 730 Units | 850 units | 1868 units |
Total Cost | |||
Variable cost per year | $182,500 | $212,500 | $467,000 |
Fixed Cost per year | ? | ? | ? |
Total Cost | $ | $ | $ |
Cost per unit | |||
Variable Cost per unit | $250 | $250 | $250 |
Fixed Cost per unit | ? | ? | ? |
Total cost per unit | $ | $ | $ |
I don't know how to get fixed cost per year and per unit, please help!
2. Calculate Presidios contribution margin ratio and its total contribution margin at each sales level indicated in the cost data table assuming the company sells each bike for $650.
3. Calculate net operating income (loss) at each of the sales levels assuming a sales price of $650.
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