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

$4$

points

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

Number of golf carts produced and sold Total costs

Variable costs

Fixed costs per year

Total costs

Cost per unit

Variable cost per unit

Fixed cost per unit

Total cost per unit

Required:

Complete the table.

Ramada sells its carts for $$1,000$ 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 $$1,000$ each.

Assume Ramada sold $450$ 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 $$60,000$ profit. Ramada sells its carts for $$1,000$ each.

Calculate Ramada's degree of operating leverage if it sells $1,050$ carts. Ramada sells its carts for $$1,000$ each.

Using the degree of operating leverage, calculate the change in Ramada's profit if sales are $10$ percent less than expected.

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

$\backslash$table$[[$Required $1,$Required $2,$Required $4,$Required $5,$Required $6,$Required $7,$Required $8]]$

Complete the table.

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

$\backslash$table$[[$Number of Golf Carts Produced and Sold,$800$ Units,$1,000$ Units,$1,200$ Units$],[$Total costs$],[$Variable costs,,$$,400,000,],[$Fixed costs per year,,,$240,000,],[$Total costs,,$$,640,000,],[$Cost per unit,,,,$]]$

Complete the table.

Ramada sells its carts for $$1,000$ 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 $$1,000$ each.

Assume Ramada sold $450$ 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 $$60,000$ profit. Ramada sells its carts for $$1,000$ each.

Calculate Ramada's degree of operating leverage if it sells $1,050$ carts. Ramada sells its carts for $$1,000$ each.

Using the degree of operating leverage, calculate the change in Ramada's profit if sales are $10$ percent less than expected.

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

Ramada sells its carts for $$1,000$ each. Prepare a contribution margin income statement for each of the three production

levels given in the table.