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Ramada Company produces one golf cart model. A partially complete table of company costs follows: 400 600 800 n $ $ ??? Number of golf
Ramada Company produces one golf cart model. A partially complete table of company costs follows: 400 600 800 n $ $ ??? 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 $384,000 144,000 528,000 ? ? ? ? ? ? ? ? ? ? ? ? Required: 1. Complete the table. 2. Ramada sells its carts for $1,600 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 200 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 $48,000 profit. 7. Calculate Ramada's degree of operating leverage if it sells 650 carts. 8. Using the degree of operating leverage, calculate the change in Ramada's profit if sales are 15 percent less than expected. Required 1 Required 2 Required 4 Required 5 Required 6 Required 7 Required 8 Complete the table. (Round your "Cost per Unit" answers to 2 decimal places.) Number of Golf Carts Produced and Sold 400 Units 600 Units 800 Units Total costs Variable costs Fixed costs per year 384,000 144,000 528,000 Total costs 0 $ $ 0 Cost per unit Variable cost per unit Fixed cost per unit Total cost per unit $ $ 0.00 $ 0.00 $ 0.00 Required 1 Required 2 > Required 1 Required 2 Required 4 Required 5 Required 6 Required 7 Required 8 Ramada sells its carts for $1,600 each. Prepare a contribution margin income statement for each of the three produ levels given in the table. Golf Carts Produced and Sold 400 units 600 units 800 units Contribution Margin Income from Operations 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 Calculate the number of carts that Ramada must sell to earn $48,000 profit. Target Unit Sales Carts Required 7 ed 1 Required 2 Required 4 Required 5 Required 6 Required 7 Required 8 Calculate Ramada's degree of operating leverage if it sells 650 carts. (Round your answer to 4 decimal places.) Degree of Operating Leverage S Required 1 Required 2 Required 4 Required 5 Required 6 Required 7 Required 8 Using the degree of operating leverage, calculate the change in Ramada's profit if sales are 15 percent less than expected. (Round your answer to 3 decimal places. (i.e. .12345 should be entered as 12.345%.)) Effect on Profit %
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