Edit View History Bookmark s Window Help 43% Sun 2:31 PM Required: 1. Complete t

Question

Edit View History Bookmark s Window Help 43% Sun 2:31 PM Required: 1. Complete the table. (Round your "Cost per Unit" answers to 2 decimal places.) Number of Golf Carts Produced and Sold 400 Units 600 Units 800 Units Total costs Variable costs S444,000 192,000 636,000 Fixed costs per year n Sho Total costs Cost per unit Variable cost per unit Fixed cost per unit Total cost per unit 2. Ramada sells its carts for $1,850 each. Prepare a contribution margin income statement for each of the three production levels given in the table. She 15.1 en Carts Produced and Sold 400 units 600 units 800 units en Sha .16.1 Contribution Margin en Sh 0.4 Net Operating Income

Explanation / Answer

1 400 units 600 units 800 units Variable Cost 296000 444000 592000 Fixed Cost 192000 192000 192000 total Cost 488000 636000 784000 Cost per unit Variable Cost per unit 740 740 740 Fixed Cost per unit 480 320 240 Total Cost Per unit 1220 1060 980 2 400 units 600 units 800 units Sales Value 740000 1110000 1480000 Variable Cost 296000 444000 592000 Contribution 444000 666000 888000 Fixed Cost 192000 192000 192000 Net Operating Income 252000 474000 696000 4 Contribution per unit = 1850 - 740 = 1110 Break even Point = Fixed Cost / Contribution per unit (192000 / 1110) = 172.97 Units i.e. 173 units Break even sales = 173*1850 = 320000 5 Yes Company earn profit last year because bep is 173 units 6 P.U. Total Sales 1850 462500 (277500/1110) = 250 Variable Cost 740 185000 Contribution 1110 277500 Required (85500+19200) Fixed Cost 192000 Profit 85500 250 Units required for 85500 profit

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