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Very confused with this problem. Thanks in advance for your help. Riverside Inc, makes one model of wooden canoe. Partial Information for it follows Number
Very confused with this problem. Thanks in advance for your help.
Riverside Inc, makes one model of wooden canoe. Partial Information for it follows Number of Canoes Produced and Sold 500 708 850 Total costs Variable costs $ 85,000 $119,080 $144,500 Fixed costs 238,000 238,000 238,000 Total costs $323,000 $357,000 $382,500 Cost per unit Variable cost per unit $ 170.00 $ 170.00 $ 170.00 Fixed cost per unit 476.00 340.00 280.00 Total cost per unit $ 646.00 $ 510.00 $ 450.00 Riverside sells its canoes for $720 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 2 decimal places (i.e. 1234 should be entered as 12.34%) and all other answers to the nearest dollar amount.) Scenario 1 Raises Sales Price to $820 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
Very confused with this problem. Thanks in advance for your help.
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