Question
In: Accounting
Ramada Company produces one golf cart model. A partially complete table of company costs follows: Number...
Ramada Company produces one golf cart model. A partially complete table of company costs follows:
Number of Golf Carts Produced and Sold 800 Units 1000 Units 1200 Units
Total costs
Variable Cost $600,000
Fixed costs per year $360,000
Total costs $960,000
Cost per unit
Variable cost per unit
Fixed cost per unitTotal cost per unit
1. Ramada sells its carts for $1,500 each. Prepare a contribution margin income statement for each of the three production levels given in the table.
2.Calculate Ramada’s break-even point in number of units and in sales revenue.
3. Assume Ramada sold 450 carts last year. Without performing any calculations, determine whether Ramada earned a profit last year.?
4. Calculate the number of carts that Ramada must sell to earn $90,000 profit.
5. Using the degree of operating leverage, calculate the change in Ramada’s profit if sales are 15 percent less than expected.
Solutions
ekkarill92 answered 2 years agoRelated Solutions
Ramada Company produces one golf cart model. A partially complete table of company costs follows: Required:...
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
1500 Units
2000 Units
2500 Units
Total Costs
Variable Costs
$840,000
Fixed Costs per year
600,000
Total Costs
$1,440,000
Cost per Unit
Variable Cost per Unit
Fixed Cost per Unit
Total Cost per Unit
2. Ramada sells its carts for $1,050...
Hermosa, Inc., produces one model of mountain bike. Partial information for the company follows: Number...
Hermosa, Inc., produces one model of mountain bike. Partial
information for the company follows:
Number of bikes produced and
sold
520
830
930
Total costs
Variable costs
$
126,880
$
?
$
?
Fixed costs per year
?
?
?
Total costs
?
?
?
Cost per unit
Variable cost per unit
?
?
?
Fixed cost per unit
?
?
?
Total cost per unit
?
$
529.75
?
Required:
1. Complete the table. (Round
your "Cost per...
Hermosa, Inc., produces one model of mountain bike. Partial information for the company follows: Number...
Hermosa, Inc., produces one model of mountain bike. Partial
information for the company follows:
Number of bikes produced and sold
530
770
950
Total costs
Variable costs
$
129,850
$
?
$
?
Fixed costs per year
?
?
?
Total costs
?
?
?
Cost per unit
Variable cost per unit
?
?
?
Fixed cost per unit
?
?
?
Total cost per unit
?
$
519.75
?
Required:
1. Complete the table.
2. Calculate Hermosa’s contribution...
Hermosa, Inc., produces one model of mountain bike. Partial information for the company follows: Number...
Hermosa, Inc., produces one model of mountain bike. Partial
information for the company follows:
Number of bikes produced and
sold
480
760
940
Total costs
Variable costs
$
115,680
$
?
$
?
Fixed costs per year
?
?
?
Total costs
?
?
?
Cost per unit
Variable cost per unit
?
?
?
Fixed cost per unit
?
?
?
Total cost per unit
?
$
520.75
?
Required:
1. Complete the table. (Round
your "Cost per...
Hermosa, Inc., produces one model of mountain bike. Partial information for the company follows: Number...
Hermosa, Inc., produces one model of mountain bike. Partial
information for the company follows:
Number of bikes produced and sold
490
830
980
Total costs
Variable costs
$
119,560
$
?
$
?
Fixed costs per year
?
?
?
Total costs
?
?
?
Cost per unit
Variable cost per unit
?
?
?
Fixed cost per unit
?
?
?
Total cost per unit
?
$
518.75
?
Required:
1. Complete the table. (Round
your "Cost...
Amber Company produces iron table and chair sets. During October, Amber’s costs were as follows: Actual...
Amber Company produces iron table and chair sets. During
October, Amber’s costs were as follows:
Actual purchase price
$ 3.20
per lb.
Actual direct labor rate
$ 8.40
per hour
Standard purchase price
$ 3.00
per lb.
Standard quantity for sets produced
1,060,000
lbs.
Standard direct labor hours allowed
21,000
Actual quantity purchased in October
1,365,000
lbs.
Actual direct labor hours
19,000
Actual quantity used in October
1,090,000
lbs.
Direct labor rate variance
$6,460
F
Required:
1. Calculate the total...
Amber Company produces iron table and chair sets. During October, Amber’s costs were as follows: Actual...
Amber Company produces iron table and chair sets. During
October, Amber’s costs were as follows:
Actual purchase price
$ 1.80
per lb.
Actual direct labor rate
$ 7.00
per hour
Standard purchase price
$ 1.60
per lb.
Standard quantity for sets
produced
920,000
lbs.
Standard direct labor hours
allowed
15,000
Actual quantity purchased in
October
1,065,000
lbs.
Actual direct labor hours
7,000
Actual quantity used in
October
950,000
lbs.
Direct labor rate variance
$5,000
F
Required:
a. Calculate the total...
1. Consider the partially completed one-way ANOVA summary table below. a) Complete the remaining entries in...
1.
Consider the partially completed one-way ANOVA summary table
below.
a) Complete the remaining entries in the table.
b) How many population means are being tested?
c) Using
alphaαequals=0.05,
what conclusions can be made concerning the population means?
Source
Sum of Squares
Degrees of Freedom
Mean Sum of Squares
F
Between
?
33
?
?
Within
96
?
?
Total
165
19
Click the icon to view a table of critical F-scores for
alphaα equals=0.05
a) Complete the ANOVA table...
Presidio, Inc. produces one model of mountain bike. Partial information for the company follows: Required: 1....
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
410 Units
770 Units
1924 Units
Total Costs
Variable costs
$106,600
Fixed costs
Total Costs
Cost per unit
Variable cost per unit
Fixed cost per unit
Total Cost per unit
$532
2. Calculate Presidio’s contribution margin ratio and its total
contribution margin at each sales...
Presidio, Inc. produces one model of mountain bike. Partial information for the company follows: Required: 1....
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 390 Units 850
Units 1270 Units Total Costs
Variable costs
$124,800 Fixed costs
Total Costs
Cost per unit
Variable cost per
unit Fixed cost
per unit Total
Cost per unit $558 ...
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