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 Total costs 450 650 800 Varable

image text in transcribed

Riverside Inc. makes one model of wooden canoe. Partial information for it follows: Number of Canoes Produced and Sold Total costs 450 650 800 Varable costs Fixed costs $ 72,000 $ 104,000 $128,000 187 200 187,200 187 200 S259,200 S 291,200 S315,200 Total costs Cost per unit Variable cost per unit S 160.00 $ 160.00 S 160.00 234.00 448.00 S 394.00 Fixed cost per unit Total cost per unit S 576.00 Riverside sells its canoes for $680 each. Next year Riverside expects to sell 1,000 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 to two decimal places (i.e. .1234 should be entered as 12.34%) and all other answers to the nearest dollar amount.) Answer is complete but not entirely correct. Scenario 1 Ralses Sales Price to $780 per Canoe Sales Price and Variable Cost per Unit by 10 Scenario 3 Decrease Fixed Cost by 20 Percont 620.00 572 00 520.00 Contribution Margin Ratio 79.49 76.47 % 76.47 % 780,000 748,000 680,000 Sales Revenue Variable Costs 176,000 160,000 620,000 187,200 520,000 Contribution Margin Fixed Costs 572,000! 187.200 224,640 Net Operating Income 432.800 384.800 295,360

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

Students also viewed these Accounting questions