Ramada Company produces one golf cart model. A partially complete table of company costs follows:

Number of golf carts produced and sold 600 800 1,000

Total costs

Variable costs $ ?Question mark $ 624,000 $ ?Question mark

Fixed costs per year ?Question mark 240,000 ?Question mark

Total costs ?Question mark $ 864,000 ?Question mark

Cost per unit

Variable cost per unit ?Question mark ?Question mark ?Question mark

Fixed cost per unit ?Question mark ?Question mark ?Question mark

Total cost per unit ?Question mark ?Question mark ?Question mark

Required:

1. Complete the table.

2. Ramada sells its carts for $1,950 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. Ramada sells its carts for $1,950 each.

5. Assume Ramada sold 300 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 $52,500 profit. Ramada sells its carts for $1,950 each.

7. Calculate Ramadas degree of operating leverage if it sells 850 carts. Ramada sells its carts for $1,950 each.

8. Using the degree of operating leverage, calculate the change in Ramadas profit if sales are 20 percent less than expected.