Question

PA5-4 Predicting Cost Behavior, Calculating Contribution Margin and Contribution Margin Ratio, Calculating Profit [LO 5-1, 5-5) Presidio, Inc. produces one model of mountain bike. Partial information for the company follows: Required: 1. Complete Presidio's cost data table. (Round your Cost per Unit answers to 2 decimal places.) 390 Units 770 Units 1560 Units Bikes Produced and Sold Total costs Variable costs $ 124,8001 Fixed costs per year Total costs Cost per unit Variable cost per unit Fixed cost per unit Total cost per unit $ 541.00 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 $610. (Round your Margin Ratio percentage answers to 2 decimal places (i.e. 1234 should be entered as 12.34%.)) 390 Units 770 Units 1560 Units Total Contribution Margin Contribution Margin Ratio 3. Calculate net operating income (loss) at each of the sales levels assuming a sales price of $610. (Round your answers to the nearest whole dollar amount.) 390 Units 770 Units 1560 Units Net Operating Income (Loss)

Answer 1

Question-1 390 770 1560 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 124800 170170 294970 246400 170170 416570 499200 170170 669370 320.00 436.33 756.33 320.00 221.00 541.00 320.00 109.08 429.08 610 610 610 320.00 320.00 320.00 290.00 290.00 290.00 390 770 1560 113100 223300 452400 Selling Price Less : Variable cost Per Unit Contributtion Margin Per Unit Numer of Bykes Produced and Sold Contribution Margin (Units* CM Per Unit) Contirbution Margin ratio (CM Per Unit /Selling Price Per Unit) Net operating income = Contibution Margin - Fixed cost Numer of Bykes Produced and Sold Netoperating income 47.54% 47.54% 47.54% 390 -57070 770 1560 53130 282230