PA$6-4($Algo$)$ Analyzing Break$-$Even Point, Target Profit, Degree of Operating Leverage $[$LO $6-1,6-2,6-5]$

Ramada Company produces one golf cart model. A partially complete table of company costs follows:

Required:

Complete the table.

Ramada sells its carts for $$1,600$ each. Prepare a contribution margin income statement for each of the three production levels given

in the table.

Calculate Ramada's break$-$even point in number of units and in sales revenue. Ramada sells its carts for $$1,600$ each.

Assume Ramada sold $200$ carts last year. Without performing any calculations, determine whether Ramada earned a profit last year.

Calculate the number of carts that Ramada must sell to earn $$48,000$ profit. Ramada sells its carts. for $$1,600$ each.

Calculate Ramada's degree of operating leverage if it sells $650$ carts. Ramada sells its carts for $$1,600$ each.

Using the degree of operating leverage, calculate the change in Ramada's profit if sales are $15$ percent less than expected.

Complete this question by entering your answers in the tabs below.

Complete the table.

Note: Round your "Cost per Unit" answers to $2$ decimal pAces.