Question
E5-16 Calculating Contribution Margin and Contribution Ratio, Preparing Contribution Margin Income Statement [LO 5-5] Riverside Inc. makes one model of wooden canoe. Partial information for
E5-16 Calculating Contribution Margin and Contribution Ratio, Preparing Contribution Margin Income Statement [LO 5-5]
Riverside Inc. makes one model of wooden canoe. Partial information for it follows:
| Number of Canoes Produced and Sold | 400 | 600 | 750 | ||||||
| Total costs | |||||||||
| Variable costs | $ | 52,000 | $ | 78,000 | $ | 97,500 | |||
| Fixed costs | 180,000 | 180,000 | 180,000 | ||||||
| Total costs | $ | 232,000 | $ | 258,000 | $ | 277,500 | |||
| Cost per unit | |||||||||
| Variable cost per unit | $ | 130.00 | $ | 130.00 | $ | 130.00 | |||
| Fixed cost per unit | 450.00 | 300.00 | 240.00 | ||||||
| Total cost per unit | $ | 580.00 | $ | 430.00 | $ | 370.00 | |||
Riverside sells its canoes for $660 each. Next year Riverside expects to sell 1,000 canoes. Required: Complete the Riversides contribution margin income statement for each independent scenario. Assuming each scenario is a variation of Riversides 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.)
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Auditing Cases An Active Learning Approach
Authors: Mark S. Beasley, Frank A. Buckless, Steven M. Glover, Douglas F. Prawitt
2nd Edition
0130674842, 978-0130674845
