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Ramada Company produces one golf cart model. A partially complete table of company costs follows: 800 1,000 Number of golf carts 600 produced and sold
Ramada Company produces one golf cart model. A partially complete table of company costs follows: 800 1,000 Number of golf carts 600 produced and sold Total costs Variable costs $ ? Fixed costs per year ? Total costs ? Cost per unit Variable cost per ? unit Fixed cost per unit ? Total cost per unit ? $400,000 $ 250,000 $650,000 ? ? ? ? ? ? ? ? ? Required: 1. Complete the table. 2. Ramada sells its carts for $1,200 each. Prepare a contribution margin income statement for each of the three production levels given in the table. 4. Calculate Ramada's break-even point in number of units and in sales revenue. 5. Assume Ramada sold 400 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 $65,000 profit. 7. Calculate Ramada's degree of operating leverage if it sells 850 carts. 8. Using the degree of operating leverage, calculate the change in Ramada's profit if sales are 10 percent less than expected. Complete this question by entering your answers in the tabs below. Required Required Required Required Required Required Required 1 2 4 5 6 7 8 Complete the table. (Round your Cost per Unit answers to 2 decimal places.) 600 Units 800 Units 1,000 Units Number of Golf Carts Produced and Sold Total costs Variable costs Fixed costs per year Total costs Cost per unit Variable cost per unit Fixed cost per unit Total cost per unit $ 400,000 250,000 0 $ 650,000 $ $ 0 $ 0.00 $ 0.00 $ 0.00 Complete this question by entering your answers in the tabs below. Required Required Required Required Required Required Required 1 2 4 5 6 7 8 Ramada sells its carts for $1,200 each. Prepare a contribution margin income statement for each of the three production levels given in the table. Golf Carts Produced and Sold 600 units 800 units 1,000 units Contribution Margin Income from Operations Complete this question by entering your answers in the tabs below. Required Required Required Required Required Required Required 1 2 4 5 6 7 8 Calculate Ramada's break-even point in number of units and in sales revenue. (Round your "Unit" and "Sales Revenue" answers to the nearest whole number.) Carts Break-Even Units Break-Even Sales Revenue Complete this question by entering your answers in the tabs below. Required Required Required Required Required Required Required 1 2 4 5 6 7 8 Assume Ramada sold 400 carts last year. Without performing any calculations, determine whether Ramada earned a profit last year. OYes ONO Complete this question by entering your answers in the tabs below. Required Required Required Required Required Required Required 1 2 4 5 6 7 8 Calculate the number of carts that Ramada must sell to earn $65,000 profit. Target Unit Sales Carts Complete this question by entering your answers in the tabs below. Required Required Required Required Required Required Required 1 2 4 5 6 7 8 Calculate Ramada's degree of operating leverage if it sells 850 carts. (Round your answer to 4 decimal places.) Degree of Operating Leverage Complete this question by entering your answers in the tabs below. Required 7 equired Required Required Required Required Required 1 2 4 5 6 7 8 Using the degree of operating leverage, calculate the change in Ramada's profit if sales are 10 percent less than expected. (Round your answer to 3 decimal places. (i.e. .12345 should be entered as 12.345%.)) Show less Effect on Profit %
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