Question

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.)
Bikes Produced and sold 470 units 850 units 1534 units

Total cost .

Variable cost . 150400   

fixed per yer ____ _____ ______

total costs ____-_ . _____ . ______

cost per unit

variable cost per unit ______ _______ ______

fixed cost per unit _____ ______ ____________

total cost per unit _______ 540.00_ ___________


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 $610. (Round your Margin Ratio percentage answers to 2 decimal places (i.e. .1234 should be entered as 12.34%.))



3. Calculate net operating income (loss) at each of the sales levels assuming a sales price of $610.(Round your answers to the nearest whole dollar amount.)

rev: 02_08_2017_QC_CS-78107

Answer 1

Bikes produced and sold
		470	850	1534
		units	units	units
total costs
variable costs		150400	272000	490880
fixed costs per year		187000	187000	187000
total costs		337400	459000	677880
cost per unit
variable cost per unit		320	320	320
fixed cost per unti		397.87	220.00	121.90
total cost per unit		717.87	540.00	441.90
			470	850	1534
total contribution margin			136300	246500	444860
contribution margin ratio			51.61%	51.61%	51.61%
			470	850	1534
Net operating income(loss)			-50700	59500	257860