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

Question

Presidio, Inc. produces one model of mountain bike. Partial information for the company follows: Complete Presidio's cost data table. (Round your Cost per Unit answers to 2 decimal places.) 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. (Round your Margin Ratio answers to 2 decimal places.) Calculate net operating income at each of the sales levels assuming a sales price of $650.

Explanation / Answer

Solution:

1.

Working -

Total Cost per unit @ 800 units = 543.75 - ( 125,000/625) = 343.75

Fixed Cost = 343.75 * 800 = 275,000

Fixed Cost remain same at all levels.

Please ask on e question per post

625 units 800 units 1,050 unit Total Cost Variable costs 125,000          160,000          210,000 Fixed costs per year    275,000.00    275,000.00    275,000.00 Total Costs    400,000.00    435,000.00    485,000.00 Cost per unit            640.00            543.75            461.90 Variable cost per unit 200 200 200 Fixed Cost per unit            440.00            343.75            261.90 Total cost per unit 543.75 543.75            461.90

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.