Reference no: EM13925818

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.