Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Riverside Inc. makes one model of wooden canoe. Partial information for it follows: Number of Canoes Produced and sold 480 630 780 Total costs Variable

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

Riverside Inc. makes one model of wooden canoe. Partial information for it follows: Number of Canoes Produced and sold 480 630 780 Total costs Variable costs $ 68,640 2 2 Fixed costs 149,900 2 Total costs $218,540 2 2 Cost per unit Variable cost per unit 2 2 2 Fixed cost per unit 7 2 Total cost per unit 2 2 2 Required: 1. Complete the table. 3. Suppose Riverside sells its canoes for $505 each. Calculate the contribution margin per canoe and the contribution margin ratio. 4. Next year Riverside expects to sell 830 canoes. Complete the contribution margin income statement for the company. Complete the table. (Round your cost per unit answers to 2 decimal places.) Number of Canoes Produced and Sold 480 630 780 Total Costs Variable Costs S 68,640 Fixed Costs 149.900 Total Costs S 218,540 S 0 S D Cost per Unit Variable Cost per Unit Fixed Cost per Unit Total Cost per Unit S 0.00 $ 0.00 S 0.00 Suppose Riverside sells its canoes for $505 each. Calculate the contribution margin per canoe and the contribution margin ratio. (Round your contribution margin to the nearest whole dollar and your contribution margin ratio to the nearest whole percent.) Unit Contribution Margin Contribution Margin Ratio per canoe Next year Riverside expects to sell 830 canoes. Complete the contribution margin income statement for the company. (Round your Contribution margin to 2 decimal places.) RIVERSIDE INC. Contribution Margin Income Statement For the Next Year Contribution Margin Net Operating income

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

College Accounting Chapters 1-12 With Study Guide And Working Papers

Authors: Jeffrey Slater

13th Edition

0133866300, 9780133866308

More Books

Students also viewed these Accounting questions