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Riverside Inc. makes one model of wooden canoe. Partial information for it follows: Number of Canoes. 550 750 900 Produced and Sold Total costs Variable
Riverside Inc. makes one model of wooden canoe. Partial information for it follows: Number of Canoes. 550 750 900 Produced and Sold Total costs Variable costs Fixed costs $104,500 $142,500 $171,000 198,000 198,000 198,000 $302,500 $340,500 $369,000 Variable cost per $190.00 $ 190.00 $ 190.00 Total costs Cost per unit unit Fixed cost per unit 360.00 264.00 220.00 Total cost per unit $ 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 (i.e. .1234 should be entered as 12.34%) and all other answers to the nearest dollar amount.) Scenario 1 Raises Sales Price to $730 per Canoe Unit Contribution Margin Contribution Margin Ratio Contribution Margin Net Operating Income Scenario 2 Increase Sales Price and Variable Cost per Unit by 10 Percent Scenario 3 Decrease Fixed Cost by 20 Percent Contribution Margin Income Statement % %
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