Question

.. Ch. 5 Homework Saved 9 Presidio, Inc., produces one model of mountain bike. Partial information for the company follows: 0.33 points 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 ta assuming the company sells each bike for $650. 3. Calculate net operating income (loss) at each of the sales levels assuming a sales price of $650. eBook Complete this question by entering your answers in the tabs below. Print Required 1 Required 2 Required 3 Complete Presidio's cost data table. (Round your Cost per Unit answers to 2 decimal places.) References 740 Units 890 Units 1,454 Units Bikes Produced and Sold Total costs Variable costs Fixed costs per year Total costs $ 185.000 $ 185,000 $ 0 $ 0 Cost per unit Variable cost per unit Fixed cost per unit Total cost per unit $ 0.00 $ 560.00 $ 0.00 Required 2 >

Answer 1

Within the relevant range, variable cost per unit remains constant while fixed costs in total remain constant
Units	740	890	1454
Total costs
Variable costs	185,000	222,500	363,500
Fixed costs per year	275,900	275,900	275,900
Total costs	460,900	498,400	639,400
Cost per unit
Variable cost per unit	250	250	250
Fixed cost per unit	372.84	310	189.75
Total cost per unit	622.84	560	439.75
Contribution margin = Sales - variable costs
Contribution Margin Ratio = Contribution margin/Sales
Units	740	890	1454
Sales	481000	578500	945100
Total contribution margin	296,000	356,000	581,600
Contribution Margin Ratio	61.54%	61.54%	61.54%
Net Operating Income = Contribution Margin - Fixed costs
Units	740	890	1454
Net Operating Income	20,100	80,100	305,700