Question

Documents nces Mailings Review View 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. Complete Presidio's cost data table. (Round your Cost per Unit answers to 2 decimal places) Bikes Produced and Sold 730 Units 810 Units 1,380 Units Total costs Variable costs $189,800 Fixed costs per year Total costs Cost per unit Variable cost per unit Fixed cost per unit Total cost per unit $556.00 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. (Round your contribution Margin Ratio percentage answers to 2 decimal places (.e. .1234 should be entered as 12.34%.)) 730 Units 810 Units 1,380 Units Total Contribution Margin Contribution Margin Ratio Calculate net operating income (loss) at each of the sales levels assuming a sales price of $640. (Round your answers to the nearest whole dollar amount.) 730 Units 810 Units 1,380 Units Net Operating Income es) Foc

Answer 1

Bikes produced and sold	730 units	810 units	1380 units
Total costs
Variable costs	189800	210600	358800
Fixed costs per year	239760	239760	239760
Total costs	429560	450360	598560
Cost per unit
Variable cost per unit	260.00	260.00	260.00
Fixed cost per unit	328.44	296.00	173.74
Total Cost per unit	588.44	556.00	433.74
2
	730 units	810 units	1380 units
Total Contribution margin	277400	307800	524400
Contribution margin ratio	59.38%	59.38%	59.38%
3
	730 units	810 units	1380 units
Net Operating income	37640	68040	284640

Workings:
Variable cost per unit	260	=189800/730
Fixed costs per year	239760	=810*(556-260)
	730 units	810 units	1380 units
Total Contribution margin	=730*(640-260)	=810*(640-260)	=1380*(640-260)
Contribution margin ratio	=(640-260)/640
	730 units	810 units	1380 units
Net Operating income	=277400-239760	=307800-239760	=524400-239760