Ramada Company produces one golf cart model. A partially complete table of compa

Question

Ramada Company produces one golf cart model. A partially complete table of company costs follows: Required: 1. Complete the table. (Round your"Cost per Unit" answers to 2 decimal places.) of Golf Carts Produced and Sold 600 Units 800 Units 1000 Units Total costs 624,000?$ 240,000 Variable costs $ 468 780 240 Fixed costs per year 240 Total costs s 708.000s 864,000 1,020.000 Cost per unit Variable cost per unit Fixed cost per unit $ 780.00S78000 400.00 780 300.00 240 Total cost per unit s 1,180.00 1080.00 1,020.00 2. Ramada sells its carts for $1,950 each. Prepare a contribution margin income statement for each of the three production levels given in the table Carts Produced and Sold 600 units 800 units 1000 units Revenue Costs Contribution Margin 702.000 S 936.000 $ 1,170 xed Costs 240000 240,000 240 Net Operating Income $ 696.000 930 4. Calculate Ramada's break-even point in number of units and in sales revenue. (Round your final answers to the nearest whole number.) Break-Even Units Carts Break-Even Sales Revenue

Explanation / Answer

600 800 1000 2) units units units sales revenue 1170000 1560000 1950000 variable costs 468000 624000 780000 contribution margin 702000 936000 1170000 fixed costs 240,000 240,000 240,000 net operating income 462,000 696,000 930,000 4) Break even units = fixed cost/contribution margin per unit 240,000/(1950-780) 205 units Break even sales revenue = fixed cost/contribution margin ratio contribution margin ratio= contribution/sales 1170/1950 60.00% 240,000/60% 400000 answer

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