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PA5-4 (Algo) Predicting Cost Behavior, Calculating Contribution Margin and Contribution Margin Ratio, Calculating Profit [LO 5-1, 5-5) Presidio, Inc

Accounting Oct 26, 2020

PA5-4 (Algo) Predicting Cost Behavior, Calculating Contribution Margin and Contribution Margin Ratio, Calculating Profit [LO 5-1, 5-5) 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 $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 730 Units 770 Units 1,604 Units Total costs Variable costs 182,500 $ 192,500 $ 401,000 Fixed costs per year Total costs $ 182,500 $ 192,500 $ 401,000 Cost per unit Variable cost per unit $ 250.00 $ 250.00 $ 250.00 Fixed cost per unit Total cost per unit $ 250.00 $ 558.00 $ 250.00 Required 1 Required 2 >
PA5-4 (Algo) Predicting Cost Behavior, Calculating Contribution Margin and Contribution Margin Ratio, Calculating Profit (LO 5-1, 5-5) 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 $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 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. (Round your contribution Margin Ratio percentage answers to 2 decimal places (i.e. .1234 should be entered as 12.34%.)) 730 Units 770 Units 1,604 Units Total Contribution Margin Contribution Margin Ratio % % %
PA5-4 (Algo) Predicting Cost Behavior, Calculating Contribution Margin and Contribution Margin Ratio, Calculating Profit [LO 5-1, 5-5) 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 $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 Calculate net operating income (loss) at each of the sales levels assuming a sales price of $640. (Round your answers to the nearest whole dollar amount.) 730 Units 770 Units 1,604 Units Net Operating Income

Expert Solution

               
               
  Bikes produced and sold        
      730 770 1604    
      units units units    
  total costs          
  variable costs 182500 192500 401000    
  fixed costs per year 237160 237160 237160    
  total costs 419660 429660 638160    
  cost per unit          
  variable cost per unit 250 250 250    
  fixed cost per unti 324.88 308 147.86    
  total cost per unit 574.88 558.00 397.86    
               
               
               
               
        730 770 1604  
  total contribution margin 284700 300300 625560  
  contribution margin ratio 60.94% 60.94% 60.94%  
               
               
               
        730 770 1604  
  Net operating income(loss) 47540 63140 388400  
               
               
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