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 510 Units 750 Units 1134 Units Total costs Variable costs Fixed costs per year Total costs Cost per unit Variable cost per unit $250.00 $250.00 $250.00 Fixed cost per unit Total cost per unit $535.00

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 $620.(Round your Margin Ratio percentage answers to 2 decimal places (i.e. .1234 should be entered as 12.34%.))

	510 Units 750 Units 1134 Units Total Contribution Margin Contribution Margin Ratio % % %

3. Calculate net operating income (loss) at each of the sales levels assuming a sales price of $620. (Round your answers to the nearest whole dollar amount.)

	510 Units 750 Units 1134 Units Net Operating Income (Loss)

Answer 1