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 ratlo 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 this question by entering your answers the tabs below. Required 1 Required 2 Required 3 Complete Presidio's cost data table. (Round your Co 730 Units 870 Units 1,776 Units 182.500 Bikes Produced and sold Total costs Variable costs Fixed costs per year Total costs Cost per unit Variable cost per unit Fixed cost per unit Total cost per unit

Answer 1

Solutions:

	730 units	870 units	1776 units
Total Costs:
Variable Costs (Units* $250)	$1,82,500	$2,17,500	$4,44,000
Fixed Costs per year ($252*910)	$2,60,130	$2,60,130	$2,60,130
Total Costs	$4,42,630	$4,77,630	$7,04,130
Cost per unit
Variable Cost per unit ($182500/ 730)	$250.00	$250.00	$250.00
Fixed Costs per unit	$356.34	$299.00	$146.47
Total Cost per unit	$606.34	$549.00	$396.47
	730 units	870 units	1776 units
Sales Price	$640	$640	$640
Less: variable Cost per unit	$250	$250	$250
Contribution Margin per unit	$390	$390	$390
Contribution Margin Ratio (Margin/ Sales)	60.94%	60.94%	60.94%
Contribution Margin in Total (Units*Margin per unit)	$2,84,700	$3,39,300	$6,92,640
	730 units	870 units	1776 units
Contribution Margin in total	$2,84,700	$3,39,300	$6,92,640
Less: Total fixed costs	$2,60,130	$2,60,130	$2,60,130
Net Operating Income (Loss)	$24,570	$79,170	$4,32,510