Ramada Company produces one golf cart model. A partially complete table of company costs follows: Number...
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Ramada Company produces one golf cart model. A partially complete table of company costs follows: Number of golf carts produced and sold 1,500 2,000 2,500 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 222 ? $1,440,000 $ ? ? 600,000 ? 2,040,000 122 ? ? 222 ? ? ? ? ? ? 222 ? ? ? Required: 1. Complete the table. 2. Ramada sells its carts for $1,800 each. Prepare a contribution margin income statement for each of the three production levels given in the table. 4. Calculate Ramada's break-even point in number of units and in sales revenue. 5. Assume Ramada sold 600 carts last year. Without performing any calculations, determine whether Ramada earned a profit last year. 6. Calculate the number of carts that Ramada must sell to earn $48,000 profit. 7. Calculate Ramada's degree of operating leverage if it sells 2,050 carts. 8. Using the degree of operating leverage, calculate the change in Ramada's profit if sales are 20 percent less than expected. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 4 Required 5 Required 6 Required 7 Required 8 Complete the table. (Round your "Cost per Unit" answers to 2 decimal places.) 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 1,500 Units 2,000 Units 2,500 Units $ 1,440,000 600,000 $ 2,040,000 Ramada Company produces one golf cart model. A partially complete table of company costs follows: Number of golf carts produced and sold 1,500 2,000 2,500 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 222 ? $1,440,000 $ ? ? 600,000 ? 2,040,000 122 ? ? 222 ? ? ? ? ? ? 222 ? ? ? Required: 1. Complete the table. 2. Ramada sells its carts for $1,800 each. Prepare a contribution margin income statement for each of the three production levels given in the table. 4. Calculate Ramada's break-even point in number of units and in sales revenue. 5. Assume Ramada sold 600 carts last year. Without performing any calculations, determine whether Ramada earned a profit last year. 6. Calculate the number of carts that Ramada must sell to earn $48,000 profit. 7. Calculate Ramada's degree of operating leverage if it sells 2,050 carts. 8. Using the degree of operating leverage, calculate the change in Ramada's profit if sales are 20 percent less than expected. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 4 Required 5 Required 6 Required 7 Required 8 Complete the table. (Round your "Cost per Unit" answers to 2 decimal places.) 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 1,500 Units 2,000 Units 2,500 Units $ 1,440,000 600,000 $ 2,040,000
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Answer rating: 100% (QA)
To complete the table we need to calculate the missing values based on the given information Required 1 Complete the table apache Copy Number of Golf Carts Produced and Sold Total costs Variable costs ... View the full answer
Related Book For
Managerial Accounting
ISBN: 978-0078025518
2nd edition
Authors: Stacey Whitecotton, Robert Libby, Fred Phillips
Posted Date:
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