Predicting Cost Behavior, Calculating Contribution Margin and Contribution Margin Ratio, Calculating Profit
Overhill, Inc., produces one model of mountain bike. Partial information for the company follows.
Cost Data | |||
Number of bikes produced and sold | 500 | 800 | 1,000 |
Total costs |
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Variable costs | $125,000 | $ ? | $ ? |
Fixed costs per year | ? | ? | ? |
Total costs | ? | ? | ? |
Cost per unit |
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Variable cost per unit | ? | ? | ? |
Fixed cost per unit | ? | ? | ? |
Total cost per unit | ? | $543.75 | ? |
Required:
1. Complete Overhill’s cost data table.
2. Calculate Overhill’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 profit at each of the sales levels assuming a sales price of $650.
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