Question

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.) Bikes Produced and Sold 730 Units 810 Units 1,362 Units Total costs $ 182,500 Variable costs Fixed costs per year Total costs Cost per unit Variable cost per unit Fixed cost per unit Total cost per unit $ 555.00

Answer 1

Bikes produced and sold
		730	810	1362
		units	units	units
total costs
variable costs		182500	202500	340500
fixed costs per year		247050	247050	247050
total costs		429550	449550	587550
cost per unit
variable cost per unit		250	250	250
fixed cost per unti		338.42	305	181.39
total cost per unit		588.42	555.00	431.39
			730	810	1362
total contribution margin			270100	299700	503940
contribution margin ratio			40.32%	40.32%	40.32%
			730	810	1362
Net operating income(loss)			23050	52650	256890