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Ramada Company produces one golf cart model. A partially complete table of company costs follows: Number of golf carts produced and sold 400 500 600 Total costs Variable costs $ ?Question mark $ 380,000 $ ?Question mark Fixed costs per year ?Question mark 180,000 ?Question mark Total costs ?Question mark $ 560,000 ?Question mark Cost per unit Variable cost per unit ?Question mark ?Question mark ?Question mark Fixed cost per unit ?Question mark ?Question mark ?Question mark Total cost per unit ?Question mark ?Question mark ?Question mark Required: 1. Complete the table. 2. Ramada sells its carts for $1,900 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. Ramada sells its carts for $1,900 each. 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 $48,000 profit. Ramada sells its carts for $1,900 each. 7. Calculate Ramada’s degree of operating leverage if it sells 550 carts. Ramada sells its carts for $1,900 each. 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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