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Business, 10.02.2020 23:09 kyliexhill

Amada Company produces one golf cart model. A partially complete table of company costs follows: Number of golf carts produced and sold 400 600 800 Total costs Variable costs $ ? $ 444,000 $ ? Fixed costs per year ? 192,000 ? Total costs ? 636,000 ? Cost per unit Variable cost per unit ? ? ? Fixed cost per unit ? ? ? Total cost per unit ? ? ? Required: 1. Complete the table. 2. Ramada sells its carts for $1,850 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 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 $85,500 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 20 percent less than expected.

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