Riverside Inc, makes one model of wooden canoe. Partial information for it follows: 540 620 780 $ 67,500 $ 77,500 $ 97,500 150,000 150,00 150,000 $217,500 $227,500 $247,500 Number of Canoes Produced and Sold Total costs Variable costs Fixed costs Total costs Cost per unit Variable cost per unit Fixed cost per unit Total cost per unit $ 125.00 $ 125.00 $ 125.00 277.78 241.94 192.31 $ 402.78 $ 366.94 $ 317.31 Riverside sells its canoes for $500 each. Next year Riverside expects to sell 700 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 percentage to two decimal places (ie. 1234 should be entered as 12.34%) and all other answers to the nearest dollar amount.) Answer is complete but not entirely correct. Scenario 2 Increase Scenario Scenario Sales 3 1 Ralses Price Decrease Sales and Fixed Price to Variable Cost by Cost per 20 Canoe Percent 10 Percent $600 per Unit by $ 475.00 $ 522.50% $ 375.00 Unit Contribution Margin Contribution Margin Ratio 79.170 % 79.17% 75.00% Contribution Margin Income Statement Sales Revenue $420,000 $ 462,000 X $ 350,000 Variable Costs 87,500 (96.250 87.500 Riverside Inc. makes one model of wooden canoe. Partial information for it follows: Number of Canoes 540 Produced and Sold 620 780 Total costs Variable costs $ 67,500 $ 77,500 $ 97,500 Fixed costs 150,000 150,000 150,000 Total costs $217,500 $227,500 $247,500 Cost per unit Variable cost $ 125.00 $ 125.00 $ 125.00 per unit Fixed cost per 277.78 unit 241.94 192.31 Total cost per $ 402.78 $ 366.94 $ 317.31 unit Riverside sells its canoes for $500 each. Next year Riverside expects to sell 700 canoes. Required: Complete the Riverside's contribution margin income statement for each independent scenario. Ass scenario is a variation of Riverside's original data (Round your unit contribution margin and contrit percentage to two decimal nt places (ie. 1234 should be entered as 12.30%) and all other answers dollar amount.) nce to 5600 per Cance Cost by Variable Cost per Unit by 10 Percent 20 Percent $ 475.00 $ 522.50% $ 375.00 Unit Contribution Margin Contribution Margin Ratio 79.11% 79.17% 75.00 % Contribution Margin income Statement Sales Revenue $ 420.000 S 462,000 X $ 350,000 Variable Costs 87.500 (96,250 87,500 38 Contribution Margin Fixed Costs $332,500 150,000 $365,750X 150,000 $ 262,50 120.000 OOK Net Operating Income $ 182.500 $215,750X $ 142,50
