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Ramada Company produces one golf cart model. A partially complete table of company costs follows: Number of golf carts produced and sold 6 0 0
Ramada Company produces one golf cart model. A partially complete table of company costs follows:
Number of golf carts produced and sold
Total costs
Variable costs $ Question mark $ $ Question mark
Fixed costs per year Question mark Question mark
Total costs Question mark $ Question mark
Cost per unit
Variable cost per unit Question mark Question mark Question mark
Fixed cost per unit Question mark Question mark Question mark
Total cost per unit Question mark Question mark Question mark
Required:
Complete the table.
Ramada sells its carts for $ each. Prepare a contribution margin income statement for each of the three production levels given in the table.
Calculate Ramadas breakeven point in number of units and in sales revenue. Ramada sells its carts for $ each.
Assume Ramada sold carts last year. Without performing any calculations, determine whether Ramada earned a profit last year.
Calculate the number of carts that Ramada must sell to earn $ profit. Ramada sells its carts for $ each.
Calculate Ramadas degree of operating leverage if it sells carts. Ramada sells its carts for $ each.
Using the degree of operating leverage, calculate the change in Ramadas profit if sales are percent less than expected.
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