Question

Check my work Presidio, Inc., produces one model of mountain bike Partial information for the company follows: Required: 1. Complete Presidio's cost data table. 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 $620 3. Calculate net operating income (loss) at each of the sales levels assuming a sales price of $620. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Complete Presidio's cost data table. (Round your Cost per Unit answers to 2 decimal places.) 740 Units 890 Units 1,506 Units . 3 S Bikes Produced and Sold Total costs Variable costs Fored costs per year Total costs Cost per unit Variable cost per unit Fixed cost per unit 2113 18 lol 1 Total cost per unit 0.00 $ 531.00 $ 0.00 Required 2 >

Answer 1

Answer with working and explanation is given below

740 units 890 units 1,506 units Bikes produced and sold Total costs Variable costs Fixed costs per year Total costs Cost per unit Variable cost per unit Fixed cost per unit Total cost per unit $185,000 $250,090 $435,090 $222,500 $250,090 $472,590 $376,500 $250,090 $626,590 $250.00 $337.96 $587.96 $250.00 $281.00 $531.00 $250.00 $166.06 $416.06 per unit Working notes: Variable cost per unit Total variable cost Total units $185,000 7401 $250 Variable cost per unit remains same Calculation of fixed cost Total cost per unit Output Total cost Less: Variable cost Fixed cost $531 A 890 B $472,590 AXB $222,500 (890 units X $250) $250,090 Fixed cost remains same at all levels of output. Cost per unit will vary Total Contribution Margin Contribution Margin Ratio 740 units $273,800 59.68% 890 units $329,300 59.68% 1,506 units $557,220 Sales - Contribution 59.68% (Contribution/Sales) Working notes: Sales units Selling price Variable cost 740 $620 $250 890 $620 $250 1506 $620 $250 Total Sales Variable Cost Total Contribution Margin $458,800 $551,800 $185,000 $222,500 $273,800_$329,300 $933,720 (Sales units X selling price) $376,500 (Sales units X variable cost) $557,220 Sales - Contribution Net Operating Income Sales Variable Cost Contribution Fixed Cost Net Operating Income 740 units | 890 units 1,506 units $458,800 $551,800 $933,720 $185,000 $222,500 $376,500 $273,800 $329,300 $557,220 $250,090 $250,090 $250,090 $23,710 $79,2101 $307,130 |