PA5-4 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. (Round your Cost per Unit answers to 2 decimal places.)

Bikes Produced and Sold	430 Units	870 Units	1606 Units
Total costs
Variable costs	$137,600
Fixed costs per year
Total costs	$137,600	$0	$0
Cost per unit
Variable cost per unit
Fixed cost per unit
Total cost per unit	$0.00	$530.00	$0.00

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 $600. (Round your Margin Ratio percentage answers to 2 decimal places (i.e. .1234 should be entered as 12.34%.))

	430 Units		870 Units		1606 Units
Total Contribution Margin
Contribution Margin Ratio		%		%		%

3. Calculate net operating income (loss) at each of the sales levels assuming a sales price of $600. (Round your answers to the nearest whole dollar amount.)

	430 Units	870 Units	1606 Units
Net Operating Income (Loss)