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 Required 1. Complete Presidio's cost data table. (Round your Cost per Unit answers to 2 decimal places.) Bikes Produced and Sold 430 Units 830 Units 1490 Units Total costs Variable costs $ 137,600 Fixed costs per year Total costs $ 137,600 $ Cost per unit Variable cost per unit 320.00 $ 320.00$ 320.00 Fixed cost per unit Total cost per unit $ 320.00 551.00320.00 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 $650 (Round your Margin Ratio percentage answers to 2 decimal places (i.e. .1234 should be entered as 12.34%.)) 430 Units 830 Units 1490 Units Total Contribution Margin Contribution Margin Ratio

Explanation / Answer

1) 430 units 830 units 1490 units Bikes Produced and Sold Variable costs 137,600 265600 476800 Fixed costs per year 191,730 191730 191,730 total costs 329,330 457330 668530 Cost per unit Variable cost per unit 320.00 320.00 320.00 Fixed cost per unit 445.88 231.00 128.68 total cost per unit 765.88 551.00 448.68 fixed cost per unit = 551-320 231 2) 430 units 830 units 1490 units Total contribution Margin 141900 273900 491700 Contribution Margin ratio 50.77% 50.77% 50.77% 3) 430 units 830 units 1490 units Net operating income -49,830 82170 299,970

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---

---

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