Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

E5-19 (Algo) Calculating Contribution Margin and Contribution Ratio, Preparing Contribution Margin Income Statement [LO 5-5) Riverside Inc. makes one model of wooden canoe. Partial information

image text in transcribed
image text in transcribed
E5-19 (Algo) 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 Sola Total costs Variable costs Fixed costs Total costs Cost per unit Variable cost per unit Fixed cost per unit Total cost per unit 550 750 900 $104,500 $ 142,500 $171,000 198,000 195,000 198,000 5302,500 $340,500 $369,000 $190.00 $190.00 $190.00 360.00 264.00 220.00 $ 550.00 $454.00 $410.00 Riverside sells its canoes for $630 each Next year Riverside expects to sell 1.000 canoes Required: Complete the Riverside's contribution margin income statement for each independent scenario. Assuming each scenario is a variation of Riverside's original data. (Round your unit contribution margin and contribution margin ratio to 2 decimal places de 1234 should be entered as 12,34%) and all other answers to the nearest dollar amount) Scenario 1 Raises Sales Price to 5730 per Canon Scenario 2 increase Sales Price and Variable Cost per Unit by 10 Percent Scenario Decrease Fixed Cost by 20 Percent Unit Contribution Margin Contribution Margin Ratio Riverside sells its canoes for $630 each. Next year Riverside expects to sell 1.000 canoes Required: Complete the Riverside's contribution margin income statement for each independent scenario. Assuming each scenario is a variation of Riverside's original data. (Round your unit contribution margin and contribution margin ratio to 2 decimal places. 1234 should be entered as 12.34%) and all other answers to the nearest doller amount.) Scenario 1 Ralses Sales Price to 5730 per Cance Scenario 2 Increase Sales Price and Variable Cost per Unit by 10 Percent Scenario 3 Decreased Cost by 20 Percent Unit Contribution Margin Contribution Margin Ratio Contribution Margint Income Statement Contribution Margin Net Operating Income

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting

Authors: Ray Garrison, Eric Noreen, Peter Brewer

16th edition

978-1259307416

Students also viewed these Accounting questions