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.

Answer 1

730 850 1644 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 182500 246500 429000 212500 246500 459000 411000 246500 657500 250.00 337.67 587.67 250.00 290.00 540.00 250.00 149.94 399.94 730 Selling Price 620 620 620 Less :Variable cost Per Unit 250.00 250.00 250.00 Contributtion Margin Per Unit 370.00 370.00 370.00 Numer of Bykes Produced and Sold 850 1644 Contribution Margin 270100 314500 608280 Contirbution Margin ratio 59.68% 59.68% 59.68% Net operating income = Contibution Margin - Fixed cost Numer of Bykes Produced and Sold 730 850 1644 Netoperating income 23600 68000 361780