E5-16 Calculating Contribution Margin and Contribution Ratio, Preparing Contribution Margin Income Statement [LO 5-5]

Riverside Inc. makes one model ot wooden canoe. Paial intormation tor it follows: Number of Canoes Produced and Sold Total costs Variable costs Fixed costs Total costs Cost per unit Variable cost per unit Fixed cost per unit Total cost per unit 400 $ 54,000 60,000 $114,000 $ 135.00 150.00 s 285.00 600 81,000 60,000 141,000 135.00 100.00 235.00 750 $101,250 60,000 $161,250 $ 135.00 8010 s 215.00 Riverside sells its canoes tor $370 each. Next year Riverside expects to sell 1 ,OOO canoes. Required: Complete the Riverside's contribution margin income statement for each independent scenario. Assuming each scenario is a variation ot Riverside's original data. (Round your unit contribution margin and contribution margin ratio to two decimal places (i.e. .1234 should be entered as 12.34%) and all other answers to the nearest dollar amount.) Scenario 1 Raises Sales Price to $470 per Canoe unit Contribution Margin Contribution Margin Ratio ntribution Ma Contribution Margin Net Operating Income Scenario 2 Increase Sales Price and Variable Cost per Unit by 10 Percent Scenario 3 Decrease Fixed Cost by 20 Percent in lnc Statem