Predicting Cost Behavior, Calculating Contribution Margin and Contribution Margin Ratio, Calculating Profit
Presidio, Inc. produces one model of mountain bike. Partial information for the company follows:
Bikes Cost per Unit: 625 800 1050
Bikes Produced and Sold 625 Units 800 Units 1,050 Units
Total costs
Variable costs $125,000
Fixed costs per year
Total costs
Cost per unit
Variable cost per unit
Fixed cost per unit
Total cost per unit $543.75
Required :
1. Complete Presidio's cost data table. (Round your Cost per Unit answers to 2 decimal places.)
2. Calculate Presidio's 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 $650. (Round your Margin Ratio answers to 2 decimal places.)
3. Calculate net operating income at each of the sales levels assuming a sales price of $650.