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Riverside Inc. makes one model of wooden canoe. Partial information for it follows: Number of Canoes Produced and Sold Total costs Variable costs Fixed costs
Riverside Inc. makes one model of wooden canoe. Partial information for it follows: Number of Canoes Produced and Sold Total costs Variable costs Fixed costs Total costs Cost per unit 500 700 850 $ 85,000 $ 119,000 238,000 $323,000 238,000 $357,000 $144,500 238,000 $382,500 $ 170.00 $ 170.00 $170.00 476.00 340.00 280.00 Variable cost per unit Fixed cost per unit Total cost per unit $ 646.00 $ 510.00 $ 450.00 Riverside sells its canoes for $720 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.) Unit Contribution Margin Contribution Margin Ratio Scenario 1 Raises Sales Price to $820 per Canoe % Scenario 2 Increase Sales Price and Variable Cost per Unit by 10 Percent % Scenario 3 Decrease Fixed Cost by 20 Percent % Contribution Margin Net Operating Income Contribution Margin Income Statement
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