Question

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 $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 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.) Bikes Produced and Sold 740 Units 910 Units 1,166 Units Total costs Variable costs $ 185,000 Fixed costs per year 0 $ 0 $ Total costs 185,000 $ Cost per unit Variable cost per unit Fixed cost per unit $ Total cost per unit 551.00 $ 0.00 $ 0.00

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Answer 1

Date: 1. Preside's cost data table in the example 910 units 1166 units 740 units $185000 Values given Variable cost Fixed Cost pee Year Total Costs. Cost per Unit Variable cost pu Fixed Cost Pu Total Cost Pou $/85000 $ 0.0 $557.00 $0.00 $185000 det us calculate the missing figures of variable Cost for 448 units is. then the variable Cost for 910 units = ? $185000 240 units 2 2 9100uuts 910 units X $ 185000 740 units -/ $ 227500 Similarly los 166 units 700 units $185000 1166 units 1166 units x $185000 740 units 3/8291500 Now in order to calculate Fixed costs cost p.u og is given for 910 units 80 we will take it as reference Total costs for 910 units - 910 units x $557 El seu 8591 € $ 501410

Total Costs = I Total variable Costs + Total Fixed Costs so Total Fixed Costs = Total Costs - Total Vavallelost's & $501410 - $227.500 $273910 of change in Fixed cost in total semaines constant petie no of units hence fixed cost Já 74o as well és 1166 units would be 3273910 Now we can fill the table Billes Produced and sold Particulars 740 units 910 units 1166 units 4 Variable cost $ 1,85000 $ 227500 $ 291500 В. Fixed Costs $273910 $ 273,910 $ 273910 $5.01410 $5,65, 410 Total Costs(A+B) $ 458,910 Cost Per Unit Variable Costp.u Fixed Cost P. u $250 $ 370 $250 $ 301 $250 $235 $ 620 $557.00 Total Cost P. u $485 * Variable fost pus Total Variable cost No of Units * Exed Cost Puma Total Fixed Cost No of units

2 calculation of Total contribution and Contribution Margin Ratio Particulars Selling Pricepu Nool units 740 units 9 640 740 $ 473,600 $ 1,85,000 ID units 1166 units 2640 4640 210 16G $ 5.82.400 12.46.240 $2,27,500 $ 2, 2,500 A total sales dess B Variablecost Total contribution $3,54,900 $$ 388,600 margin (A-B) 84,54,740 Contribution margin Ratio Total Contxoo 60.94°/ 60.94% 60.94% Total Sales 32 | Calculation of net operating Inspmeldoss, Particulars puo units 910 units 1166 units $ 3,54,900 $ 452,740 $ 2,88,600 Contribution Margin Less Fixed Costs 82,73,910 $ 2,73,910 $ 2,73,910 $ 80,990 81,80,830 Wet operating 314690 Income