PA6-4 (Algo) Analyzing Break-Even Point, Target Profit, Degree of Operating Leverage [LO 6-1, 6-2, 6-5] Ramada Company produces one golf cart model. A partially complete table of company costs follows: 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 Required: 400 $? ? ? Required 1 Required 2 Required 4 Required 5 Required 6 ? ? ? Complete this question by entering your answers in the tabs below. % 500 $ 330,000 120,000 $ 450,000 1. Complete the table. 2. Ramada sells its carts for $1,650 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. Ramada sells its carts for $1,650 each. 5. Assume Ramada sold 200 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 $28,500 profit. Ramada sells its carts for $1,650 each. 7. Calculate Ramada's degree of operating leverage if it sells 550 carts. Ramada sells its carts for $1,650 each. 8. Using the degree of operating leverage, calculate the change in Ramada's profit if sales are 15 percent less than expected. Required 7 600 $? ? ? ? ? ? Required 8 Using the degree of operating leverage, calculate the change in Ramada's profit if sales are 15 percent less than expected. Note: Do not round your intermediate calculations. Round your answer to 3 decimal places. (i.e. 0.12345 should be entered as 12.345%.). Change in Profit
PA6-4 (Algo) Analyzing Break-Even Point, Target Profit, Degree of Operating Leverage [LO 6-1, 6-2, 6-5] Ramada Company produces one golf cart model. A partially complete table of company costs follows: 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 Required: 400 $? ? ? Required 1 Required 2 Required 4 Required 5 Required 6 ? ? ? Complete this question by entering your answers in the tabs below. % 500 $ 330,000 120,000 $ 450,000 1. Complete the table. 2. Ramada sells its carts for $1,650 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. Ramada sells its carts for $1,650 each. 5. Assume Ramada sold 200 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 $28,500 profit. Ramada sells its carts for $1,650 each. 7. Calculate Ramada's degree of operating leverage if it sells 550 carts. Ramada sells its carts for $1,650 each. 8. Using the degree of operating leverage, calculate the change in Ramada's profit if sales are 15 percent less than expected. Required 7 600 $? ? ? ? ? ? Required 8 Using the degree of operating leverage, calculate the change in Ramada's profit if sales are 15 percent less than expected. Note: Do not round your intermediate calculations. Round your answer to 3 decimal places. (i.e. 0.12345 should be entered as 12.345%.). Change in Profit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![PA6-4 (Algo) Analyzing Break-Even Point, Target Profit, Degree of Operating Leverage [LO 6-1, 6-2, 6-5]
Ramada Company produces one golf cart model. A partially complete table of company costs follows:
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
Required:
400
$?
?
?
?
?
?
%
Complete this question by entering your answers in the tabs below.
< Required 7
$ 330,000
120,000
$ 450,000
500
1. Complete the table.
2. Ramada sells its carts for $1,650 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. Ramada sells its carts for $1,650 each.
5. Assume Ramada sold 200 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 $28,500 profit. Ramada sells its carts for $1,650 each.
7. Calculate Ramada's degree of operating leverage if it sells 550 carts. Ramada sells its carts for $1,650 each.
8. Using the degree of operating leverage, calculate the change in Ramada's profit if sales are 15 percent less than expected.
Required 7
600
Required 8 >
$?
?
?
Required 1 Required 2 Required 4 Required 5 Required 6
Using the degree of operating leverage, calculate the change in Ramada's profit if sales are 15 percent less than expected.
Note: Do not round your intermediate calculations. Round your answer to 3 decimal places. (i.e. 0.12345 should be entered
as 12.345%.).
Change in Profit
?
?
?
Required 8](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6fda5958-ea14-4ac0-ae32-c64757d0ff7b%2F4b99f647-c7e0-4a94-b0b7-b481b690fcfc%2Fixyn8he_processed.jpeg&w=3840&q=75)
Transcribed Image Text:PA6-4 (Algo) Analyzing Break-Even Point, Target Profit, Degree of Operating Leverage [LO 6-1, 6-2, 6-5]
Ramada Company produces one golf cart model. A partially complete table of company costs follows:
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
Required:
400
$?
?
?
?
?
?
%
Complete this question by entering your answers in the tabs below.
< Required 7
$ 330,000
120,000
$ 450,000
500
1. Complete the table.
2. Ramada sells its carts for $1,650 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. Ramada sells its carts for $1,650 each.
5. Assume Ramada sold 200 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 $28,500 profit. Ramada sells its carts for $1,650 each.
7. Calculate Ramada's degree of operating leverage if it sells 550 carts. Ramada sells its carts for $1,650 each.
8. Using the degree of operating leverage, calculate the change in Ramada's profit if sales are 15 percent less than expected.
Required 7
600
Required 8 >
$?
?
?
Required 1 Required 2 Required 4 Required 5 Required 6
Using the degree of operating leverage, calculate the change in Ramada's profit if sales are 15 percent less than expected.
Note: Do not round your intermediate calculations. Round your answer to 3 decimal places. (i.e. 0.12345 should be entered
as 12.345%.).
Change in Profit
?
?
?
Required 8
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