Ramada Company produces one golf cart model. A partially complete table of company costs follows: 400 500 600 $ $ Number of golf carts produced and sold Total costs Variable conta Fixed costs per year Total costs Cost per unit Variable cost per unit Fixed cost per unit Total cost per unit 2 2 2 $230,000 120,000 350,000 ? 7 2 2 2 7 ? 2 2 ? 2 7 Required: 1. Complete the table 2. Ramada sells its carts for $1150 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 $18,000 profit. 7. Calculate Ramada's degree of operating leverage if it sells 550 carts. 8. Using the degree of operating leverage calculate the change in Ramada's profitif sales are 10 percent less than expected, question by entering your answers in the tabs below. Dints Required 1 Required 2 Required 4 Required Required 6 Required 7 Required B Complete the table. (Round your "Cost per Unit" answers to 2 decimal places.) Number of Golf Carts Produced and Sold 400 Units 500 Units 600 Units Total costs Variable costs $ 184,000 $ 230,000 $ 276.000 Fixed costs per year 120,000 120,000 120,000 Total costs $ 304,000 $ 350,000 $ 396,000 $ 460.00 Cost per unit Variable cost per unit Fixed cost per unit Total cost per unit 460.00 $ 300.00 760.00 $ 460.00 $ 240,00 700.00 $ 200.00 660.00 $ Required 2 > Required 1 Required 2 Required 4 Required 5 Required 6 Required 7 Required 8 Ramada sells its carts for $1,150 each. Prepare a contribution margin income statement for each of the three production levels given in the table. Golf Carts Produced and Sold Sales Revenue Variable Costs 400 units 460,000 184,000 500 units $575,000 230,000 600 units $ 690,000 276,000 $ Contribution Margin Fixed Costs 276,000 $ 345,000 $ 414,000 120,000 120,000 120,000 Income from Operations 156,000 $ 225,000 294,000 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 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.) Break-Even Units Break-Even Sales Revenue Carts 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 $18,000 profit. Target Unit Sales Carts
