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PA6-4 (Algo) Analyzing Break-Even Point, Target Profit, Degree of Operating Leverage [LO 6-1, 6-2, 6-5]...

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Accounting

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PA6-4 (Algo) Analyzing Break-Even Point, Target Profit, Degree of Operating Leverage [LO 6-1, 6-2, 6-5] Ramada Company produces one golf cart model. A partially complete table of company costs follows: Required: 1. Complete the table. 2. Ramada sells its carts for $1,000 each. Prepare a contribution margin income statement for each of the three production levels given in the table. 4. Calculate Ramada's break-even point in number of units and in sales revenue. Ramada sells its carts for $1,000 each: 5. Assume Ramada sold 450 carts last year. Without performing any calculations. determine whether Ramada earned a profit last year. 6. Calculate the number of carts that Ramada must sell to earn $60,000 profit. Ramada sells its carts for $1,000 each. 7. Calculate Ramada's degree of operating leverage if it sells 1,050 carts. Ramada sells its carts for $1,000 each. 8. Using the degree of operating leverage, calculate the change in Ramada's profit if sales are 10 percent less than expected. Complete this question by entering your answers in the tabs below. Complete the table. Note: Round your "Cost per Unit" answers to 2 decimal places

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