Question
Ramada Company produces one golf cart model. A partially complete table of company costs follows: Required: 1. Complete the table. (Round your Cost per Unit
Ramada Company produces one golf cart model. A partially complete table of company costs follows: Required: 1. Complete the table. (Round your "Cost per Unit" answers to 2 decimal places.) 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 Ramadas break-even point in number of units and in sales revenue. (Round your final answers to the nearest whole number.) 5. Assume Ramada sold 200 carts last year. Without performing any calculations, determine whether Ramada earned a profit last year. Yes No 6. Calculate the number of carts that Ramada must sell to earn $48,000 profit. 7. Calculate Ramadas degree of operating leverage if it sells 650 carts. (Round your answer to 4 decimal places. (i.e. .12345 should be entered as 12.345%.)) 8. Using the degree of operating leverage, calculate the change in Ramadas profit if sales are 15 percent less than expected. (Round your answer to 3 decimal places.)
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