Question

Check 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 $640. 3. Calculate net operating income (loss) at each of the sales levels assuming a sales price of $640. points eBook Complete this question by entering your answers in the tabs below. Print References Required 1 Required 2 Required 3 Complete Presidio's cost data table. (Round your Cost per Unit answers to 2 decimal places.) Bikes Produced and Sold 740 Units 790 Units 1,194 Units Total costs $ 185,000 $ 185,000 $ 0 $ Variable costs Fixed costs per year Total costs Cost per unit Variable cost per unit Fixed cost per unit Total cost per unit $ 0.00 $ 551.00 $ 0.00 Required 1 Required 2 >

Answer 1

740 790 1194 Question-1 Numer of Bykes Produced and Sold Total Cost Variable Cost Fixed cost Per Year Total Cost cost per unit Variable cost per unit Fixed cost Per unit Total Cost Per unit 185000 237790 422790 197500298500 237790 237790 435290 536290 250.00 321.34 571.34 250.00 301.00 551.00 250.00 199.15 449.15 Selling Price 640 640 640 Less : Variable cost Per Unit 250.00 250.00 250.00 Contributtion Margin Per Unit 390.00 390.00 390.00 Numer of Bykes Produced and Sold 740 790 1194 Contribution Margin 288600 308100 465660 Contirbution Margin ratio 60.94% 60.94% 60.94% Net operating income = Contibution Margin - Fixed cost Numer of Bykes Produced and Sold 740 790 1194 Netoperating income 50810 70310 227870