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 $650. 3. Calculate net operating income at each of the sales levels assuming a sales price of $650. 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.) 625 Units 800 Units 1,050 Units $ 125,000 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 $ 543.75 < Required 1 Required 2 >

Answer 1

625 Units 800 Units 1,050 Units Cost data table :- Particulars Total costs :- Variable costs Fixed costs per year Total costs Cost per unit: Variable cost per unit Fixed costs per unit Total cost per unit 1,25,000 2,75,000 4,00,000 1,60,000 2,75,000 4,35,000 2,10,000 2,75,000 4,85,000 200.00 440.00 640.00 200.00 343.75 543.75 200.00 261.90 461.90 Note:- Variable cost per unit remain same at every level of activity. and Total cost per unit is = Fixed cost per unit + Variable cost per unit Total contribution margin and Contribution margin ratio :- Particulars 625 Units 800 Units Sales @650 per each bike 4,06,250 5,20,000 Less: Variable cost @ 200 per each bike 1,25,000 1,60,000 Contribution margin 2,81,250 3,60,000 Contribution margin% 69.23% 69.23% 1,050 Units 6,82,500 2,10,000 4,72,500 69.23% Operating Income - Particulars Sales @650 per each bike Less: Variable cost @ 200 per each bike Contribution margin Less: Fixed cost Operating Income 625 Units 4,06,250 1,25,000 2,81,250 2,75,000 6,250 800 Units 5,20,000 1,60,000 3,60,000 2,75,000 85,000 1,050 Units 6,82,500 2,10,000 4,72,500 2,75,000 1,97,500