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.) Number of Golf Carts Produced and Sold 400 Units 600 Units 800 Units Total costs Variable costs $264,000 96,000 $96,000$ 360,000 96,000 Fixed costs per year 96,000 96,000 Total costs Cost per unit Variable cost per unit Fixed cost per unit Total cost per unit 0.00$ 0.00 $ 0.00 2. Ramada sells its carts for $1,100 each. Prepare a contribution margin income statement for each of the three production levels given in the table Golf Carts Produced and Sold 400 units 600 units 800 units Contribution Margin Net Operating Income

Explanation / Answer

1.

2.

4.

Workings:

5. Yes

Since the number of carts sold of 150 was higher than the break-even number of 145 carts, Ramada earned a profit last year.

Per Chegg guidelines, 4 sub-parts have been answered.

Number of Golf Carts Produced and Sold 400 Units 600 Units 800 Units Total costs          Variable costs 176000 264000 352000          Fixed costs per year 96000 96000 96000 Total costs $ 272000 360000 448000 Cost per unit          Variable cost per unit 440 440 440          Fixed cost per unit 240 160 120 Total cost per unit $ 680.00 600.00 560.00

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