Question

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 $630. 3. Calculate net operating income (loss) at each of the sales levels assuming a sales price of $630. 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.) 730 Units 790 Units 1,056 Units Bikes Produced and Sold Total costs Variable costs Fixed costs per year $ 182,500 Total costs $ 182,500 $ 0 $ 0 Cost per unit Variable cost per unit Fixed cost per unit Total cost per unit $ 0.00 $ 546.00 $ 0.00

Answer 1

1. Complete Presidio's cost data table. (Round your Cost per Unit answers to 2 decimal places.)
Bikes Produced and Sold	730 Units	790 Units	1056 Units
Total costs
Variable costs	$        182,500.00	$ 197,500.00	$ 264,000.00
Fixed costs per year	$        233,840.00	$ 233,840.00	$ 233,840.00
Total costs	$        416,340.00	$ 431,340.00	$ 497,840.00
Cost per unit
Variable cost per unit	$               250.00	$        250.00	$        250.00
Fixed cost per unit	$               320.33	$        296.00	$        221.44
Total cost per unit	$               570.33	$        546.00	$        471.44
2)
Bikes Produced and Sold	730 Units	790 Units	1056 Units
Sales (A)	$        459,900.00	$ 497,700.00	$ 665,280.00
Less: Variable cost	$        182,500.00	$ 197,500.00	$ 264,000.00
Contribution Margin (B)	$        277,400.00	$ 300,200.00	$ 401,280.00
Contribution Margin Ratio (A/B)	60.32%	60.32%	60.32%
3)
Bikes Produced and Sold	730 Units	790 Units	1056 Units
Sales	$        459,900.00	$ 497,700.00	$ 665,280.00
Less: Variable cost	$        182,500.00	$ 197,500.00	$ 264,000.00
Contribution Margin	$        277,400.00	$ 300,200.00	$ 401,280.00
Less: Fixed Cost	$        233,840.00	$ 233,840.00	$ 233,840.00
Net Operating Income	$          43,560.00	$   66,360.00	$ 167,440.00