Question
This was all that was given Ramada Company produces one golf cart model. A partially complete table of company costs follows: Required: 1. Complete the
This was all that was given
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 $1,850 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.
No | |
Yes |
6. Calculate the number of carts that Ramada must sell to earn $85,500 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 20 percent less than expected. (Round your answer to 3 decimal places.)
Edit View History Bookmark s Window Help 43% Sun 2:31 PM Required: 1. 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 S444,000 192,000 636,000 Fixed costs per year n Sho Total costs Cost per unit Variable cost per unit Fixed cost per unit Total cost per unit 2. Ramada sells its carts for $1,850 each. Prepare a contribution margin income statement for each of the three production levels given in the table. She 15.1 en Carts Produced and Sold 400 units 600 units 800 units en Sha .16.1 Contribution Margin en Sh 0.4 Net Operating IncomeStep by Step Solution
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