Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Ramada Company produces one golf cart model. A partially complete table of company costs follows: Number of golf carts produced and sold 600 1, 000

image text in transcribed
Ramada Company produces one golf cart model. A partially complete table of company costs follows: Number of golf carts produced and sold 600 1, 000 Required: $ ? $ 464, 000 Fixed costs per year 2 240 , 000 $ 704 , 080 1. Complete the table. Total costs Cost per unit in the table. 2. Ramada sells its carts for $1,450 each. Prepare a contribution margin income statement for each of the three production levels given Variable cost per unit cost per unit 4. Calculate Ramada's break-even point in number of units and in sales revenue. Ramada sells its carts for $1,450 each. Total cost per unit 5. Assume Ramada sold 3 late the pope soo 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 $21,000 profit. Ramada sells its carts for $1,450 each. Required: 7. Calculate Ramada's degree of operating leverage if it sells on it sells 850 carts. Ramada sells its carts for $1,450 each. Using the degree of operating leverage, calculate the change in Ramada's profit if sales are 15 percent less than expected. 1. Complete the table. 2 Ramada sells its carts for $1,450 each. Prepare a contribution margin income statement for each of the three production levels given in the table. Complete this question by entering your answers in the tabs below. 4. Calculate Ramada's break-even point in number of units and in sales revenue. Ramada sells its carts for $1,450 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 $21,000 profit. Ramada sells its carts for $1,450 each. Required 7. Calculate Ramada's degree of operating leverage if it sells 850 carts. Ramada sells its carts for $1,450 Required 2 Required 4 Required 5 Required 6 Required 7 Required 8 B. Using the degree of operating leverage, calculate the change in Ramada's profit if sales are 15 percent less than expected. Ramada sells its carts for $1,450 each. Prepare a contribution margin income statement for each of the three production levels given in the table. Complete this question by entering your answers in the tabs below. Golf Carts Produced and Sold 600 units 800 units 1,000 units Sales Revenue $ 870,000 $ 1.160.000 5 1,450 000 Required 1 Required 2 Required 4 Required 5 Required 6 Required 7 Required 8 Variable Costs 580 Complete the table. Note: Round your "Cost per Unit" answers to 2 decimal places. Contribution Margin 522,000 $ $ 920,000 $ 870,000 Fixed Costs 180,000 240,000 240,000 600 Units 800 Units 1,000 Units Total costs Variable costs 464,000 Income from Operations 282.000 $ 680.000 $ 630,000 Fixed costs per year 240,000 Total costs 704,000 $ Cost per unit Variable cost per unit Fixed cost per unit Required: Required: 1. Complete the table. . Complete the table. in the table. 2. Ramada sells its carts for $1,450 each. Prepare a contribution margin income statement for each of the three production levels given in the table. 2. Ramada sells its carts for $1,450 each. Prepare a contribution margin income statement for each of the three production levels given 4. Calculate Ramada's break-even point in number of units and in sales revenue. Ramada sells its carts for $1,450 each. 5. Assume Ramada sold 300 carts last year. Without performing any calculations, determine whether Ramada earned a profit last year. 4. Calculate Ramada's break-even point in number of units and in sales revenue. Ramada sells its carts for $1,450 each. ume Ramada sold 300 carts last year. Without performing any calculations, 6. Calculate the number of carts that Ramada must sell to earn $21,000 profit. Ramada sells its carts for $1,450 each. productions, determine whether Ramada earned a profit last year. 7. Calculate Ramada's degree of operating leverage if it sells 850 carts. Ramada sells its carts for $1,450 each. . Calculate the number of carts that Ramada must sell to earn $21,000 profit. Ramada sells its carts for $1,450 each. 7. Calculate Ramada's degree of operating leverage if it sells 850 carts. Ramada sells its carts for $1,450 each. 8. Using the degree of operating leverage, calculate the change in Ramada's profit if sales are 15 percent less than expected. 8. Using the degree of operating leverage, calculate e, calculate the change in Ramada's profit if sales are 15 percent less than expected Complete this question by entering your answers in the tabs below Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 4 Required 5 Required 6 Required 7 Required 8 Required 1 Required 2 Required 4 Required 5 Required 6 Required 7 Required 8 Calculate Ramada's break-even point in number of units and in sales revenue. Ramada sells its carts for $1,450 each. Calculate Ramada's degree of operating leverage if it sells 850 carts. Ramada sells its carts for $1,450 each. Note: Do not round your intermediate calculations. Round your "Unit" and "Sales Revenue" answers to the he Note: Do not round your intermediate calculations. Round your answer to 4 decimal places. number. rs to the nearest whole Degree of Operating Break-Even Units Carts Break-Even Sales Revenue

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Principles Of Accounting And Principles Of Financial Accounting

Authors: Belverd E Needles, Marian Powers, Susan V Crosson

12th Edition

1133962459, 9781133962458

More Books

Students also viewed these Accounting questions