## Answers

1. Complete Presidio's cost data table. (Round your Cost per Unit answers to 2 decimal places.) | |||

Bikes Produced and Sold | 730 Units | 790 Units | 1056 Units |

Total costs | |||

Variable costs | $ 182,500.00 | $ 197,500.00 | $ 264,000.00 |

Fixed costs per year | $ 233,840.00 | $ 233,840.00 | $ 233,840.00 |

Total costs | $ 416,340.00 | $ 431,340.00 | $ 497,840.00 |

Cost per unit | |||

Variable cost per unit | $ 250.00 | $ 250.00 | $ 250.00 |

Fixed cost per unit | $ 320.33 | $ 296.00 | $ 221.44 |

Total cost per unit | $ 570.33 | $ 546.00 | $ 471.44 |

2) | |||

Bikes Produced and Sold | 730 Units | 790 Units | 1056 Units |

Sales (A) | $ 459,900.00 | $ 497,700.00 | $ 665,280.00 |

Less: Variable cost | $ 182,500.00 | $ 197,500.00 | $ 264,000.00 |

Contribution Margin (B) | $ 277,400.00 | $ 300,200.00 | $ 401,280.00 |

Contribution Margin Ratio (A/B) | 60.32% | 60.32% | 60.32% |

3) | |||

Bikes Produced and Sold | 730 Units | 790 Units | 1056 Units |

Sales | $ 459,900.00 | $ 497,700.00 | $ 665,280.00 |

Less: Variable cost | $ 182,500.00 | $ 197,500.00 | $ 264,000.00 |

Contribution Margin | $ 277,400.00 | $ 300,200.00 | $ 401,280.00 |

Less: Fixed Cost | $ 233,840.00 | $ 233,840.00 | $ 233,840.00 |

Net Operating Income | $ 43,560.00 | $ 66,360.00 | $ 167,440.00 |

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