PA5-4 (Algo) Predicting Cost Behavior, Calculating Contribution Margin and Contribution Margin Ratio, Calculating Profit [LO 5-1, 5-5]

Presidio, Inc., produces one model of mountain bike. Partial information for the company follows: Required: 1. Complete Presidios cost data table. 2. Calculate Presidios 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 $640. 3. Calculate net operating income (loss) at each of the sales levels assuming a sales price of $640.

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

• Required 1
• Required 2
• Required 3

Complete Presidios cost data table. (Round your Cost per Unit answers to 2 decimal places.)

Bikes Produced and Sold	730 Units	870 Units	1,392 Units
Total costs
Variable costs	$189,800
Fixed costs per year
Total costs	$189,800	$0	$0
Cost per unit
Variable cost per unit
Fixed cost per unit
Total cost per unit	$0.00	$536.00	$0.00

• REQ 2

Calculate Presidios 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 $640. (Round your Contribution Margin Ratio percentage answers to 2 decimal places (i.e. .1234 should be entered as 12.34%.))

	730 Units		870 Units		1,392 Units
Total Contribution Margin
Contribution Margin Ratio		%		%		%

REQ 3

Calculate net operating income (loss) at each of the sales levels assuming a sales price of $640. (Round your answers to the nearest whole dollar amount.)

	730 Units	870 Units	1,392 Units
Net Operating Income