Question
Riverside Inc. makes one model of wooden canoe. Partial information for it follows: Number of Canoes Produced and Sold 400 600 750 Total costs Variable
Riverside Inc. makes one model of wooden canoe. Partial information for it follows:
| Number of Canoes Produced and Sold | 400 | 600 | 750 | ||||||
| Total costs | |||||||||
| Variable costs | $ | 48,000 | $ | 72,000 | $ | 90,000 | |||
| Fixed costs | 120,000 | 120,000 | 120,000 | ||||||
| Total costs | $ | 168,000 | $ | 192,000 | $ | 210,000 | |||
| Cost per unit | |||||||||
| Variable cost per unit | $ | 120.00 | $ | 120.00 | $ | 120.00 | |||
| Fixed cost per unit | 300.00 | 200.00 | 160.00 | ||||||
| Total cost per unit | $ | 420.00 | $ | 320.00 | $ | 280.00 | |||
Riverside sells its canoes for $500 each. Next year Riverside expects to sell 1,000 canoes.
Required:
Complete the Riversides contribution margin income statement for each independent scenario. Assuming each scenario is a variation of Riversides 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.)
Riverside Inc. makes one model of wooden canoe. Partial information for it follows:
| Number of Canoes Produced and Sold | 400 | 600 | 750 | ||||||
| Total costs | |||||||||
| Variable costs | $ | 48,000 | $ | 72,000 | $ | 90,000 | |||
| Fixed costs | 120,000 | 120,000 | 120,000 | ||||||
| Total costs | $ | 168,000 | $ | 192,000 | $ | 210,000 | |||
| Cost per unit | |||||||||
| Variable cost per unit | $ | 120.00 | $ | 120.00 | $ | 120.00 | |||
| Fixed cost per unit | 300.00 | 200.00 | 160.00 | ||||||
| Total cost per unit | $ | 420.00 | $ | 320.00 | $ | 280.00 | |||
Riverside sells its canoes for $500 each. Next year Riverside expects to sell 1,000 canoes.
Required:
Complete the Riversides contribution margin income statement for each independent scenario. Assuming each scenario is a variation of Riversides 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.)
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Accounting
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren
23rd Edition
978-0324662962
