Question

Ramada Company produces one golf cart model. A partially complete table of company costs follows: Required 1. Complete the table. (Round your Cost per Unit answers to 2 decimal places.) Number of Golf Carts Produced and Sold 600 Units 800 Units 1000 Units Total costs Variable costs $ 400,000 Fixed costs per year 250,000 Total costs 0$650,000 S Cost per unit Variable cost per unit Fixed cost per unit Total cost per unit 0.00 $ 0.00 S 0.00 2. Ramada sells its carts for $1,200 each. Prepare a contribution margin income statement for each of the three production levels given in the table olf Carts Produced and Sold 600 units 800 units 1,000 units Contribution Margin Income from Operations 4. Calculate Ramada's break-even point in number of units and in sales revenue. (Round your "Unit" and "Sales Revenue" answers to the nearest whole number.) Break-Even Units Carts Break-Even Sales Revenue 5. Assume Ramada sold 400 carts last year. Without performing any calculations, determine whether Ramada earned a profit last year. O No O Yes 6. Calculate the number of carts that Ramada must sell to earn $65,000 profit. Target Unit Sales Carts 7. Calculate Ramada's degree of operating leverage if it sells 850 carts. (Round your answer to 4 decimal places.) ree of Operating Leverage

Answer 1