Ramada Company produces one golf cart model A partially complete table of company costs follows Number of golf carts produced and sold 1,500 2,000 2,500 Total costs Variable costs $ $ 1,040,000 $ Fixed costs per year 600,000 Total costs $ 1,640,000 Cost per unit Variable cost per unit Fixed cost per unit Total cost per unit Required 1 Complete the table 2 Ramada sells its carts for $1,300 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 $1,300 each 5 Assume Ramada sold 800 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 $24,000 profit Ramada sells its carts for $1,300 each 7 Calculate Ramadas degree of operating leverage if it sells 2,050 carts Ramada sells its carts for $1,300 each 8 Using the degree of operating leverage, calculate the change in Ramadas profit if sales are 10 percent less than expected Complete the table Note Round your Cost per Unit answers to 2 decimal places Required 1 Number of Golf Carts Produced and Sold 1,500 Units 2,000 Units 2,500 Units Total costs Variable costs $1,040,000 Fixed costs per year 600,000 Total costs $1,640,000 Cost per unit Variable cost per unit Fixed cost per unit Total cost per unit Required 2 Ramada sells its carts for $1,300 each Prepare a contribution margin income statement for each of the three production levels given in the table Golf Carts Produced and Sold 1,500 units 2,000 units 2,500 units Contribution Margin Income from Operations Required 4 Calculate Ramadas break even point in number of units and in sales revenue Ramada sells its carts for $1,300 each Note Do not round your intermediate calculations Round your Unit and Sales Revenue answers to the nearest whole number Break Even Units Carts Break Even Sales Revenue Required 5 Assume Ramada sold 800 carts last year Without performing any calculations, determine whether Ramada earned a profit last year Required 6 Calculate the number of carts that Ramada must sell to earn $24,000 profit Ramada sells its carts for $1,300 each Note Do not round your intermediate calculations Target Unit Sales Carts Required 7 Calculate Ramadas degree of operating leverage if it sells 2,050 carts Ramada sells its carts for $1,300 each Note Do not round your intermediate calculations Round your answer to 4 decimal places Degree of Operating Leverage Required 8 Using the degree of operating leverage, calculate the change in Ramadas profit if sales are 10 percent less than expected Note Do not round your intermediate calculations Round your answer to 3 decimal places (i e 0 12345 should be entered as 12 345 ) Change in Profit

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Ramada Company produces one golf cart model. A partially complete table of company costs follows: Number of golf carts produced and sold 1,500 2,000 2,500

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

Number of golf carts produced and sold	1,500	2,000	2,500
Total costs
Variable costs	$ ?	$ 1,040,000	$ ?
Fixed costs per year	?	600,000	?
Total costs	?	$ 1,640,000	?
Cost per unit
Variable cost per unit	?	?	?
Fixed cost per unit	?	?	?
Total cost per unit	?	?	?

Required:

1. Complete the table.

2. Ramada sells its carts for $1,300 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 $1,300 each.

5. Assume Ramada sold 800 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 $24,000 profit. Ramada sells its carts for $1,300 each.

7. Calculate Ramadas degree of operating leverage if it sells 2,050 carts. Ramada sells its carts for $1,300 each.

8. Using the degree of operating leverage, calculate the change in Ramadas profit if sales are 10 percent less than expected.

Complete the table. Note: Round your "Cost per Unit" answers to 2 decimal places.

Required 1

Number of Golf Carts Produced and Sold	1,500 Units	2,000 Units	2,500 Units
Total costs
Variable costs		$1,040,000
Fixed costs per year		600,000
Total costs		$1,640,000
Cost per unit
Variable cost per unit
Fixed cost per unit
Total cost per unit

Required 2

Ramada sells its carts for $1,300 each. Prepare a contribution margin income statement for each of the three production levels given in the table.

Golf Carts Produced and Sold	1,500 units	2,000 units	2,500 units




Contribution Margin



Income from Operations

Required 4

Calculate Ramadas break-even point in number of units and in sales revenue. Ramada sells its carts for $1,300 each. Note: Do not round your intermediate calculations. Round your "Unit" and "Sales Revenue" answers to the nearest whole number.

Break-Even Units		Carts
Break-Even Sales Revenue

Required 5

Assume Ramada sold 800 carts last year. Without performing any calculations, determine whether Ramada earned a profit last year.

Required 6

Calculate the number of carts that Ramada must sell to earn $24,000 profit. Ramada sells its carts for $1,300 each. Note: Do not round your intermediate calculations.

Target Unit Sales

Carts

Required 7

Calculate Ramadas degree of operating leverage if it sells 2,050 carts. Ramada sells its carts for $1,300 each. Note: Do not round your intermediate calculations. Round your answer to 4 decimal places.

Degree of Operating Leverage

Required 8

Using the degree of operating leverage, calculate the change in Ramadas profit if sales are 10 percent less than expected. Note: Do not round your intermediate calculations. Round your answer to 3 decimal places. (i.e. 0.12345 should be entered as 12.345%.).