800 1,000 600 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 $. ? $464,000 240,000 704,000 2$ ? ? ? Required: 1. Complete the table. 2. Ramada sells its carts for $1,450 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 300 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 $21,000 profit. 7. Calculate Ramada's degree of operating leverage if it sells 850 carts. 8. Using the degree of operating leverage, calculate the change in Ramada's profit if sales are 15 percent less than expected. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 4 Required 5 Required 6 Required 7 Required 8 Complete the table. (Round your "Cost per Unit" answers to 2 decimal places.) Number of Golf Carts Produced and Sold 600 Units 800 Units 1,000 Units Total costs Variable costs 2$ 464,000 Fixed costs per year 240,000 Total costs 704.000 Prov 5. of 5
800 1,000 600 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 $. ? $464,000 240,000 704,000 2$ ? ? ? Required: 1. Complete the table. 2. Ramada sells its carts for $1,450 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 300 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 $21,000 profit. 7. Calculate Ramada's degree of operating leverage if it sells 850 carts. 8. Using the degree of operating leverage, calculate the change in Ramada's profit if sales are 15 percent less than expected. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 4 Required 5 Required 6 Required 7 Required 8 Complete the table. (Round your "Cost per Unit" answers to 2 decimal places.) Number of Golf Carts Produced and Sold 600 Units 800 Units 1,000 Units Total costs Variable costs 2$ 464,000 Fixed costs per year 240,000 Total costs 704.000 Prov 5. of 5
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:HW
Check my WC
800
1,000
600
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
?
$464,000
240,000
704,000
?
ok
Required:
1. Complete the table.
2. Ramada sells its carts for $1,450 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 300 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 $21,000 profit.
7. Calculate Ramada's degree of operating leverage if it sells 850 carts.
8. Using the degree of operating leverage, calculate the change in Ramada's profit if sales are 15 percent less than expected.
nces
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
600 Units
800 Units
1,000 Units
Total costs
Variable costs
464,000
Fixed costs per year
240,000
Total costs
704.000
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