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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 | $ | 90,000 | $ | 126,000 | $ | 153,000 | |||
Fixed costs | 119,000 | 119,000 | 119,000 | ||||||
Total costs | $ | 209,000 | $ | 245,000 | $ | 272,000 | |||
Cost per unit | |||||||||
Variable cost per unit | $ | 180.00 | $ | 180.00 | $ | 180.00 | |||
Fixed cost per unit | 238.00 | 170.00 | 140.00 | ||||||
Total cost per unit | $ | 418.00 | $ | 350.00 | $ | 320.00 | |||
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 two decimal places (i.e. .1234 should be entered as 12.34%) and all other answers to the nearest dollar amount.)
Scenario1 Raises Sales Price to $600 per Canoe Scenario 2 Increase Sales Price and Variable Cost per Unit by 10 Percent Scenario 3 Decrease Fixed Cost by 20 Percent Unit Contribution Margin Contribution Margin Ratio Contribution Margin Income Statement Contribution Margin Net Operating Income
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