Question
E5-14 Determining Cost Behavior, Preparing Contribution Margin Income Statement [LO 5-1, 5-5] Riverside Inc. makes one model of wooden canoe. Partial information for it follows:
E5-14 Determining Cost Behavior, Preparing Contribution Margin Income Statement [LO 5-1, 5-5]
Riverside Inc. makes one model of wooden canoe. Partial information for it follows:
| Number of Canoes Produced and Sold | ||||||
| 455 | 605 | 755 | ||||
| Total costs | ||||||
| Variable costs | $ | 66,430 | ? | ? | ||
| Fixed costs | 148,100 | ? | ? | |||
| Total costs | $ | 214,530 | ? | ? | ||
| Cost per unit | ||||||
| Variable cost per unit | ? | ? | ? | |||
| Fixed cost per unit | ? | ? | ? | |||
| Total cost per unit | ? | ? | ? | |||
Required: 1. Complete the table. (Round your cost per unit answers to 2 decimal places.) 3. Suppose Riverside sells its canoes for $501 each. Calculate the contribution margin per canoe and the contribution margin ratio. (Round your contribution margin to the nearest whole dollar and your contribution margin ratio to the nearest whole percent.) 4. Next year Riverside expects to sell 805 canoes. Complete the contribution margin income statement for the company.
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Financial Accounting An Introduction To Concepts Methods And Uses
Authors: Clyde P. Stickney, Roman L. Weil
10th Edition
0324183518, 978-0324183511
