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Question posted in text below Ramada Company produces one golf cart model. A partially complete table of company costs follows: Required: 1. Complete the table.
Question posted in text below
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.) 2. Ramada sells its carts for $1,250 each. Prepare a contribution margin income statement for each of the three production levels given in the table. 4. Calculate Ramadas break-even point in number of units and in sales revenue. (Round your final answers to the nearest whole number.) 5. Assume Ramada sold 350 carts last year. Without performing any calculations, determine whether Ramada earned a profit last year.
Yes | |
No |
6. Calculate the number of carts that Ramada must sell to earn $30,000 profit. 7. Calculate Ramadas degree of operating leverage if it sells 1,050 carts. (Round your answer to 4 decimal places. (i.e. .12345 should be entered as 12.345%.)) 8. Using the degree of operating leverage, calculate the change in Ramadas profit if sales are 10 percent less than expected. (Round your answer to 3 decimal places.)
4. Calculate Ramada's break-even point in number of units and in sales revenue. (Round your final answers to the nearest whole number.) Break-Even Units Carts Break-Even Sales Revenue 5. Assume Ramada sold 350 carts last year. Without performing any calculations, determine whether Ramada earned a profit last year. O Yes O No 6. Calculate the number of carts that Ramada must sell to earn $30,000 profit. Target Unit Sales CartsStep by Step Solution
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