Question

Presidio, Inc., produces one model of mountain bike. Partial information for the company follows:

Required: 1. Complete Presidio’s cost data table.

Bikes Produced and sold	730 Units	850 units	1868 units
Total Cost
Variable cost per year	$182,500	$212,500	$467,000
Fixed Cost per year	?	?	?
Total Cost	$	$	$
Cost per unit
Variable Cost per unit	$250	$250	$250
Fixed Cost per unit	?	?	?
Total cost per unit	$	$	$

I don't know how to get fixed cost per year and per unit, please help!

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 $650.

3. Calculate net operating income (loss) at each of the sales levels assuming a sales price of $650.

Answer 1