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?? http://ecto.mheducation... p-de Ch 5 HW Presidio, Inc. produces one model of

ID: 2433126 • Letter: #

Question

?? http://ecto.mheducation... p-de Ch 5 HW Presidio, Inc. produces one model of mountain bike Partial information for the company follows Required: 1. Complete Presidio's cost data table (Round your Cost per Unit answers to 2 decimal places.) Produced and Sold 370 Units870 Units 1064 Units Total costs $118,400 Variable costs Fixed costs per year Total costs Cost per unt Variable cost per unit Fbxed cost per uni Total cost per unnt S 543.00 2. Calculate Presidio's contribution margin ratio and ts total contribution margin at each sales level indicated in the cost data table assuming the company sells each bike for SBD0 (Round your Margin Ratio percentage answers to 2 decimal places (i.e. .1234 should be entered as 12.34%.)) 370 Units 870 Units 1064 Units Total Contribution Margin Contribution Margin Ratio a. Calculate net operaling income loss) at each of the sales levels assuming a sales price of $800. (Round your answers to the nearest whole dollar amount) 370 Units 870 Units 1064 Net Operating income (Loss)

Explanation / Answer

Answers

370 Units

870 units

1064 units

Total Costs:

Variable cost

$                   118,400.00

$                           278,400.00

$             340,480.00

Fixed Cost per year

$                   194,010.00

$                           194,010.00

$             194,010.00

Total Costs:

$                   312,410.00

$                           472,410.00

$             534,490.00

Cost per unit:

Variable cost per unit

$                           320.00

$                                   320.00

$                     320.00

Fixed cost per unit

$                           524.35

$                                   223.00

$                     182.34

Total cost per unit

$                           844.35

$                                   543.00

$                     502.34

Working for above:

370 Units

870 units

1064 units

Total Costs:

Variable cost

118400

=870*320

=1064*320

Fixed Cost per year

194010

=870*223

194010

Total Costs:

Total Costs:

Total Costs:

Total Costs:

Cost per unit:

Variable cost per unit

=118400/370

320

320

Fixed cost per unit

=194010/370

=543-320

=194010/1064

Total cost per unit

=320+524.35

543

=320+182.34

370 Units

870 units

1064 units

Sale price per bike - A

$                           600.00

$                                   600.00

$                     600.00

Variable cost per bike – B

$                           320.00

$                                   320.00

$                     320.00

Unit Contribution margin – C = A – B

$                           280.00

$                                   280.00

$                     280.00

Total Contribution margin D = Units x C

$                   103,600.00

$                           243,600.00

$             297,920.00

CM Ratio = (C/A) x 100

46.67%

46.67%

46.67%

370 Units

870 units

1064 units

Total Contribution margin [calculated in Req 2]

$                   103,600.00

$                           243,600.00

$             297,920.00

Total Fixed Cost

$                   194,010.00

$                           194,010.00

$             194,010.00

Net Operating Income (Loss)

$                   (90,410.00)

$                             49,590.00

$             103,910.00

370 Units

870 units

1064 units

Total Costs:

Variable cost

$                   118,400.00

$                           278,400.00

$             340,480.00

Fixed Cost per year

$                   194,010.00

$                           194,010.00

$             194,010.00

Total Costs:

$                   312,410.00

$                           472,410.00

$             534,490.00

Cost per unit:

Variable cost per unit

$                           320.00

$                                   320.00

$                     320.00

Fixed cost per unit

$                           524.35

$                                   223.00

$                     182.34

Total cost per unit

$                           844.35

$                                   543.00

$                     502.34

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