60.1K

Verified Solution

Link Copied!

PA5-4 Predicting Cost Behavior, Calculating Contribution Margin and Contribution Margin Ratio, Calculating Profit [LO 5-1, 5-5] Presidio, Inc. produces one model of mountain bike. Partial information for the company follows: Required: 1. Complete Presidio's cost data table. (Round your Cost per Unit answers to 2 decimal places.) 390 Units 770 Units 1928 Units Bikes Produced and Sold Total costs Variable costs $ no more questions $ 117,000 $ 0 Fixed costs per year Total costs Cost per unit Variable cost per unit Fixed cost per unit $ 0.00 $ 551.00 $ 0.00 2. Calculate Presidio's contribution margin ratio and its total contribution margin at each sales level indicated in the cost data table assuming the company sells each bike for $630. (Round your Margin Ratio percentage answers to 2 decimal places (ie..1234 should be entered as 12.34%.) 390 Units 770 Units 1928 Units Total Contribution Margin Contribution Margin Ratio % % % 3. Calculate net operating income (loss) at each of the sales levels assuming a sales price of $630. (Round your answers to the nearest whole dollar amount.) 390 Units 770 Units 1928 Units Net Operating Income (Loss) PA5-4 Predicting Cost Behavior, Calculating Contribution Margin and Contribution Margin Ratio, Calculating Profit [LO 5-1, 5-5] Presidio, Inc. produces one model of mountain bike. Partial information for the company follows: Required: 1. Complete Presidio's cost data table. (Round your Cost per Unit answers to 2 decimal places.) 390 Units 770 Units 1928 Units Bikes Produced and Sold Total costs Variable costs $ no more questions $ 117,000 $ 0 Fixed costs per year Total costs Cost per unit Variable cost per unit Fixed cost per unit $ 0.00 $ 551.00 $ 0.00 2. Calculate Presidio's contribution margin ratio and its total contribution margin at each sales level indicated in the cost data table assuming the company sells each bike for $630. (Round your Margin Ratio percentage answers to 2 decimal places (ie..1234 should be entered as 12.34%.) 390 Units 770 Units 1928 Units Total Contribution Margin Contribution Margin Ratio % % % 3. Calculate net operating income (loss) at each of the sales levels assuming a sales price of $630. (Round your answers to the nearest whole dollar amount.) 390 Units 770 Units 1928 Units Net Operating Income (Loss)

Answer & Explanation Solved by verified expert

See Answer