Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
image text in transcribed
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 mber of Golf Carts Produced and Sold 400 Units 500 Units 600 Units Total costs Variable costs $ 330,000 Fixed costs per year 120,000 Total costs 0 450,000 $ Cost per unit Variable cost per unit Fixed cost per unit Total cost per unit 0.00 0.00$ 0.00 2. Ramada sells its carts for $1,650 each. Prepare a contribution margin income statement for each of the three production levels given in the table. If Carts Produced and Sold400 units 500 units 600 units Contrbution Margin Net Operating Income 4. Calculate Ramada's break-even point in number of units and in sales revenue. (Round your final answers to the nearest whole number.) Break-Even Units Carts Break-Even Sales Revenue 5. Assume Ramada sold 200 carts last year. Without performing any calculations, determine whether Ramada earned a profit last year. O Yes No 6. Calculate the number of carts that Ramada must sell to eam $28,500 profit Carts 7. Calculate Ramada's degree of operating leverage if it sells 550 carts (Round your answer to 4 decimal places. (ie. .12345 should be entered as 12.345%.)) 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) Efect on Prof

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing Assurance And Risk

Authors: W. Robert Knechel, Steve Salterio, Brian Ballou

3rd Edition

0324313187, 9780324313185

More Books

Students also viewed these Accounting questions