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		500			700			850
Total costs
Variable costs	$	90,000		$	126,000		$	153,000
Fixed costs		119,000			119,000			119,000
Total costs	$	209,000		$	245,000		$	272,000
Cost per unit
Variable cost per unit	$	180.00		$	180.00		$	180.00
Fixed cost per unit		238.00			170.00			140.00
Total cost per unit	$	418.00		$	350.00		$	320.00

Riverside sells its canoes for $500 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.)

	Scenario 1 Raises Sales Price to $600 per Canoe		Scenario 2 Increase Sales Price and Variable Cost per Unit by 10 Percent		Scenario 3 Decrease Fixed Cost by 20 Percent
Unit Contribution Margin
Contribution Margin Ratio		%		%		%
Contribution Margin Income Statement
Contribution Margin
Net Operating Income