Required:
1. Complete Presidio’s cost data table.
(Round your Cost per Unit answers to 2 decimal
places.)
Bikes Produced and sold 470 units 850 units 1534 units
Total cost .
Variable cost . 150400 ____ _____.
fixed per yer ____ _____. ______
total costs ______ _____ ______
cost per unit
variable cost per unit ______ _______ ______
fixed cost per unit _____ ______ ____________
total cost per unit _______. 540.00_. ___________
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 $610.
(Round your Margin Ratio percentage answers to 2 decimal
places (i.e. .1234 should be entered as 12.34%.))
Total Contribution _______. _________. _________.
Contribution Margin Ratio ______.% ________.% _______.%
3. Calculate net operating income (loss) at each
of the sales levels assuming a sales price of $610.(Round
your answers to the nearest whole dollar amount.)
Net Operating Income(loss) _____ _____ _____
Case 1 2 3
Bikes produced and sold (units) 470 850 1534
Total cost
Variable cost 150400(given) 850*320 1534*320 =272000 =490880
Fixed cost per year 187000 187000 187000
Total cost 337400 459000 677880
Cost per unit
Variable cost per unit 320 320 320
Fixed cost per unit 397.87 220 121.90
Total cost per unit 717.87 540(given) 441.90
2- Total Contribution
Sales ($610 each unit) $286700 $518500 $935740 Less-Variable cost $150400 $272000 $490880 Contribution $136300 $246500 $444860 Contribution Margin Ratio 47.54% 47,54% 47.54%
Since variable cost is same therefore implying same contribution margin ratio in all cases.
3. Net operating income/loss
Contribution $136300 $246500 $444860 Less- Fixed cost $187000 $187000 $187000
Net income/loss ($50700) $59500 $257860
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