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I can't seem to calculate out these last 4, I don't know what's I'm doing wrong. E5-19 (Algo) Calculating Contribution Margin and Contribution Ratio, Preparing
I can't seem to calculate out these last 4, I don't know what's I'm doing wrong.
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: 400 600 750 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 $ 50,000 90,000 $140,000 $ 75,000 90,000 $ 165,000 $ 93,750 90,000 $183,750 $ 125.00 225.00 $ 350.00 $ 125.00 150.00 $ 275.00 $ 125.00 120.00 $ 245.00 Riverside sells its canoes for $430 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 (i.e. 1234 should be entered as 12.34%) and all other answers to the nearest dollar amount.) Answer is complete but not entirely correct. Scenario 2 Scenario 3 Scenario 1 Raises Increase Sales Decrease Fixed Sales Price to Price and Variable Cost by 20 $530 per Canoe Cost per Unit by Percent 10 Percent $ 405.00 $ 335.50 $ 305.00 Unit Contribution Margin Contribution Margin Ratio 76.42% 70.93% 70.93 % Contribution Margin Income Statement $ 530,000 $ 460,500 X Sales Revenue $ 430,000 X Answer is complete but not entirely correct. Scenario 1 Raises Sales Price to $530 per Canoe Scenario 2 Increase Sales Price and Variable Cost per Unit by 10 Percent Scenario 3 Decrease Fixed Cost by 20 Percent 405.00 $ 335.50 $ 305.00 Unit Contribution Margin Contribution Margin Ratio 76.42 % 70.93 % 70.93 % Sales Revenue Contribution Margin Income Statement $ 530,000 460.500 X 125.000 125.000 S 480.000 Variable Costs 125,000 Contribution Margin 405,000 $ 335,500 0 $ 305.000 Fixed Costs 5 90.000 90,000 90,000 x x Net Operating Income IS 315,000 $ 245,500 $ 215.000
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