Presidio, Inc. produces one model of mountain bike. Partial information for the
ID: 2343116 • Letter: P
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 Sold370 Units 770 Units 1786 Units Total costs Vanable costs 114.700 Fixed costs per year Total costs 114.700 S Cost per unit Variable cosl per uriit Fixed cost per unit Tatal cast per uriil 0.00 S 537.00 0.00 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 S630. (Round your Margin Ratio percentage answers to 2 decimal places (i.e. .1234 should be entered as 12.34%.)) 370 Units 770 Units 1786 Units Total Contribution Margin Contribution Margin Ratio 3. Calculate net operating income (loss) at each of the sales levels assuming a sales price of $630. (Round your answers to the nearest whole dollar amount.) 370 Units 770 Units 1786 Units Net Operating Income (Loss)Explanation / Answer
Answer
370 units
770 units
1786 units
Total Costs:
Variable costs
$ 114,700.00
$ 238,700.00
$ 553,660.00
Fixed Cost per year
$ 174,790.00
$ 174,790.00
$ 174,790.00
Total Costs
$ 289,490.00
$ 413,490.00
$ 728,450.00
Cost per unit:
Variable cost per unit
$ 310.00
$ 310.00
$ 310.00
Fixed cost per unit
$ 472.41
$ 227.00
$ 97.87
Total cost per unit
$ 782.41
$ 537.00
$ 407.87
--Working for above
370 units
770 units
1786 units
Total Costs:
Variable costs
114700
=770*310
=1786*310
Fixed Cost per year
174790
=227*770
174790
Total Costs
Total Costs
Total Costs
Total Costs
Cost per unit:
Variable cost per unit
=114700/370
310
310
Fixed cost per unit
=174790/370
=537-310
=174790/1786
Total cost per unit
Total cost per unit
537
Total cost per unit
Working
370 units
770 units
1786 units
A
Sale price per unit
$ 630.00
$ 630.00
$ 630.00
B
Variable cost per unit
$ 310.00
$ 310.00
$ 310.00
C = A - B
Contribution margin per unit
$ 320.00
$ 320.00
$ 320.00
D = Units x C
Total Contribution margin
$ 163,200.00
$ 265,600.00
$ 389,120.00
E = (C/A) x 100
CM Ratio
50.79%
50.79%
50.79%
Working
370 units
770 units
1786 units
A [calculated in Req 2]
Total Contribution margin
$ 163,200.00
$ 265,600.00
$ 389,120.00
B
Fixed Costs
$ 174,790.00
$ 174,790.00
$ 174,790.00
C = A - B
Net Operating Income (Loss)
$ (11,590.00)
$ 90,810.00
$ 214,330.00
370 units
770 units
1786 units
Total Costs:
Variable costs
$ 114,700.00
$ 238,700.00
$ 553,660.00
Fixed Cost per year
$ 174,790.00
$ 174,790.00
$ 174,790.00
Total Costs
$ 289,490.00
$ 413,490.00
$ 728,450.00
Cost per unit:
Variable cost per unit
$ 310.00
$ 310.00
$ 310.00
Fixed cost per unit
$ 472.41
$ 227.00
$ 97.87
Total cost per unit
$ 782.41
$ 537.00
$ 407.87