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. 400 $? ? ? ? ? ? 600 $324,000 120,000 444,000 ? ? ? 800 $? ? ? ? ? ? Required: 1. Complete the table. 2. Ramada sells its carts for $1,350 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.
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. 400 $? ? ? ? ? ? 600 $324,000 120,000 444,000 ? ? ? 800 $? ? ? ? ? ? Required: 1. Complete the table. 2. Ramada sells its carts for $1,350 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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 1 Required 2
Number of Golf Carts Produced and Sold
Total costs
Variable costs
Fixed costs per year
Total costs
Cost per unit
Required 4
Variable cost per unit
Fixed cost per unit
Total cost per unit
$
Complete this question by entering your answers in the tabs below.
400
?
?
?
$
?
$
?
?
< Required 1
Saved
Required:
1. Complete the table.
2. Ramada sells its carts for $1,350 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 180 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 $42,000 profit.
7. Calculate Ramada's degree of operating leverage if it sells 650 carts.
8. Using the degree of operating leverage, calculate the change in Ramada's profit if sales are 15 percent less than expected.
Required 5 Required 6
Complete the table. (Round your "Cost per Unit" answers to 2 decimal places.)
400 Units
600
0 $
$324,000
120,000
444,000
$
?
?
?
0.00 $
600 Units
$
324,000
120,000
444,000 $
800
Required 7 Required 8
0.00 $
Required 2 >
?
?
?
?
?
?
800 Units
Help Save &
0
0.00
Ch](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F459ff28f-0c3b-4055-921a-b1b8cb6658f2%2F76a6e5ba-85be-4915-9ab6-d2eda73946a5%2F5ooer04_processed.jpeg&w=3840&q=75)
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References
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 1 Required 2
Number of Golf Carts Produced and Sold
Total costs
Variable costs
Fixed costs per year
Total costs
Cost per unit
Required 4
Variable cost per unit
Fixed cost per unit
Total cost per unit
$
Complete this question by entering your answers in the tabs below.
400
?
?
?
$
?
$
?
?
< Required 1
Saved
Required:
1. Complete the table.
2. Ramada sells its carts for $1,350 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 180 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 $42,000 profit.
7. Calculate Ramada's degree of operating leverage if it sells 650 carts.
8. Using the degree of operating leverage, calculate the change in Ramada's profit if sales are 15 percent less than expected.
Required 5 Required 6
Complete the table. (Round your "Cost per Unit" answers to 2 decimal places.)
400 Units
600
0 $
$324,000
120,000
444,000
$
?
?
?
0.00 $
600 Units
$
324,000
120,000
444,000 $
800
Required 7 Required 8
0.00 $
Required 2 >
?
?
?
?
?
?
800 Units
Help Save &
0
0.00
Ch
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