Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Riverside Inc. makes one model of wooden canoe. Partial information for it follows: Number of Canoes Produced and Sold 500 700 850 Total costs Variable
Riverside Inc. makes one model of wooden canoe. Partial information for it follows:
Number of Canoes Produced and Sold | 500 | 700 | 850 | ||||||
Total costs | |||||||||
Variable costs | $ | 87,500 | $ | 122,500 | $ | 148,750 | |||
Fixed costs | 178,500 | 178,500 | 178,500 | ||||||
Total costs | $ | 266,000 | $ | 301,000 | $ | 327,250 | |||
Cost per unit | |||||||||
Variable cost per unit | $ | 175.00 | $ | 175.00 | $ | 175.00 | |||
Fixed cost per unit | 357.00 | 255.00 | 210.00 | ||||||
Total cost per unit | $ | 532.00 | $ | 430.00 | $ | 385.00 | |||
Riverside sells its canoes for $650 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.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started