1. Complete Presidio’s cost data table. (Round your Cost per Unit answers to 2 d
ID: 2480331 • Letter: 1
Question
1. Complete Presidio’s cost data table. (Round your Cost per Unit answers to 2 decimal places.)
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. (Round your Margin Ratio answers to 2 decimal places.)
3.Calculate net operating income at each of the sales levels assuming a sales price of $650. (Round your answers to the nearest whole dollar amount.)
Presidio, Inc. produces one model of mountain bike. Partial information for the company follows:Explanation / Answer
1) Statement showing computations Particulars 450 Units 910 Units 1,496 Units Total Costs Variable Costs 144,000.00 291,200.00 478,720.00 Fixed Costs per year - Total Costs 144,000.00 291,200.00 435,200.00 Costs per unit: Variable costs per unit 320.00 320.00 320.00 Fixed Costs per unit - - - Total Costs per unit 320.00 320.00 320.00 2) Statement showing computations Particulars 450 Units 910 Units 1,496 Units Sales Value @650 292,500.00 591,500.00 972,400.00 Variable Costs 144,000.00 291,200.00 478,720.00 Total Contribution Margin 148,500.00 300,300.00 493,680.00 Contribution Margin Ratio = Cont/Sales 50.77% 50.77% 50.77% 3) Fixed Costs are not given in the question thus we have assumed them to be 0. Total Contribution Margin 148,500.00 300,300.00 493,680.00 Fixed Costs - - - Net Operating Income = Cont - FC 148,500.00 300,300.00 493,680.00
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.