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

530

680

830

Total costs

Variable costs

$

78,440

?

?

Fixed costs

149,300

?

?

Total costs

$

227,740

?

?

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.)

Number of Canoes Produced and Sold	530	680	830
Total Costs
Variable Costs	$78,440
Fixed Costs	149,300
Total Costs	$227,740	$0	$0
Cost per Unit
Variable Cost per Unit
Fixed Cost per Unit
Total Cost per Unit	$0.00	$0.00	$0.00

3. Suppose Riverside sells its canoes for $519 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.)

Unit Contribution Margin
Contribution Margin Ratio		%

4. Next year Riverside expects to sell 880 canoes. Complete the contribution margin income statement for the company.

RIVERSIDE INC.
Contribution Margin Income Statement
For the Next Year
Contribution Margin
Net Operating Income