Required:

Complete the table.

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.

Calculate Ramada's break$-$even point in number of units and in sales revenue. Ramada sells its carts for $$1,800$ each.

Assume Ramada sold $600$ 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 $$48,000$ profit. Ramada sells its carts for $$1,800$ each.

Calculate Ramada's degree of operating leverage if it sells $2,050$ carts. Ramada sells its carts for $$1,800$ each.

Using the degree of operating leverage, calculate the change in Ramada's profit if sales are $20$ percent less than expected.

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