Reference no: EM13661566

Predicting Cost Behavior, Calculating Contribution Margin and Contribution Margin Ratio, Calculating Profit [LO 5-1, 5-5]
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.

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