E5-17 (Algo) Determining Cost Behavior, Preparing Contribution Margin Income Statement [LO 5-1, 5-5)Riverside Incorporated makes one model of wooden canoe. Partial information for it follows:Number of Canoes Produced and SoldTotal costsVariable costsFixed costsTotal costsCost per unitVariable cost per unitFixed cost per unitTotal cost per unitRequired 1 Required 3Variable costsFixed costs515$ 72,615149,300$ 221,915Number of Canoes Produced and SoldTotal costsTotal costsCost per unitVariable cost per unitFixed cost per unitRequired:1. Complete the table.3. Suppose Riverside sells its canoes for $505 each. Calculate the contribution margin per canoe and the contribution margin ratio.4. Next year Riverside expects to sell 865 canoes. Complete the contribution margin income statement for the company.Required 4Total cost per unit77Complete the table.Note: Round your cost per unit answers to 2 decimal places.$$665$751572,615149,300221,915 $8150.00 $777< Required 177665149,300149,300 $0.00 $815149.300149,3000.00Required 3> Complete this question by entering your answers in the tabs below.Required 1 Required 3Suppose Riverside sells its canoes for $505 each. Calculate the contribution margin per canoe and the contribution marginratio.Note: Round your contribution margin to the nearest whole dollar and your contribution margin ratio to the nearest wholepercent.Unit contribution marginContribution margin ratioRequired 4Contribution marginper canceNet operating income< Required 1Required 1 Required 3 Required 4Next year Riverside expects to sell 865 canoes. Complete the contribution margin income statement for the company.Note: Round your Contribution margin to 2 decimal places.RIVERSIDE INCORPORATEDContribution Margin Income Statement+For the Next YearRequired 4 >< Required 3Required 4 >

Variable costs are costs that varies with the number of units sold or produced. Fixed costs are…

E5-17 (Algo) Determining Cost Behavior, Preparing Contribution Margin Income Statement [LO 5-1, 5-5] Riverside Incorporated makes one model of wooden canoe. Partial information for it follows: 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 515 $ 72,615 149,300 $ 221,915 665 7 7 ? 7 815 7 7 7 7 7 Required: 1. Complete the table. 3. Suppose Riverside sells its canoes for $505 each. Calculate the contribution margin per canoe and the contribution margin ratio. 4. Next year Riverside expects to sell 865 canoes. Complete the contribution margin income statement for the company

E5-17 (Algo) Determining Cost Behavior, Preparing Contribution Margin Income Statement [LO 5-1, 5-5] Riverside Incorporated makes one model of wooden canoe. Partial information for it follows: 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 515 $ 72,615 149,300 $ 221,915 665 7 7 ? 7 815 7 7 7 7 7 Required: 1. Complete the table. 3. Suppose Riverside sells its canoes for $505 each. Calculate the contribution margin per canoe and the contribution margin ratio. 4. Next year Riverside expects to sell 865 canoes. Complete the contribution margin income statement for the company

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Sandy Bank, Incorporated, makes one model of wooden canoe. And, the information for it follows: 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 450 650 800 $ 120,000 $374,400 $ 494,400 $ 67,500 $ 374,400 $ 441,900 $ 97,500 $374,400 $ 471,900 $ 150.00 832.00 $ 150.00 576.00 $ 982.00 $ 726.00 $ 618.00 $ 150.00 468.00 Sandy Bank sells its canoes for $475 each. Required: 1. Suppose that Sandy Bank raises its selling price to $600 per canoe. Calculate its new break-even point in units and in sales dollars. 2. If Sandy Bank sells 900 canoes, compute its margin of safety in dollars and as a percentage of sales. (Use the new sales price of $600) 3. Calculate the number of canoes that Sandy Bank must sell at $600 each to generate $110,000 profit.
Ces 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 Required 1 Required 3 Number of Canoes Produced and Sold Total costs Variable costs Fixed costs Total costs Cost per unit Complete this question by entering your answers in the tabs below. Required 4 Complete the table. Note: Round your cost per unit answers to 2 decimal places. Variable cost per unit Fixed cost per unit Total cost per unit Required: 1. Complete the table. 3. Suppose Riverside sells its canoes for $503 each. Calculate the contribution margin per canoe and the contribution margin ratio. 4. Next year Riverside expects to sell 855 canoes. Complete the contribution margin income statement for the company. $ 505 $ $ 70,700 148,700 $ 219,400 $ 505 2 7 ? 70,700 148,700 219,400 $ 0.00 655 $ 655 ? ? ? ? ? ? 0.00 0 $ $ 805 805 2 ? ? 2 2 ? 0 0.00
Sandy Bank, Inc., makes one model of wooden canoe. And, the information for it follows: Number of canoes produced and sold 550 750 900 Total costs Variable costs $ 110,000 $ 150,000 $ 180,000 Fixed costs $ 99,000 $ 99,000 $ 99,000 Total costs $ 209,000 $ 249,000 $ 279,000 Cost per unit Variable cost per unit $ 200.00 $ 200.00 $ 200.00 Fixed cost per unit 180.00 132.00 110.00 Total cost per unit $ 380.00 $ 332.00 $ 310.00 Required:1. Suppose that Sandy Bank raises its selling price to $500 per canoe. Calculate its new break-even point in units and in sales dollars. (Do not round intermediate calculations. Round your final answers to nearest whole number.) 2. If Sandy Bank sells 1,590 canoes, compute its margin of safety in dollars and as a percentage of sales. (Use the new sales price of $500.) (Round your answers to the nearest whole number.) 3. Calculate the number of…
Required information The Foundational 15 (Algo) [LO5-1, LO5-2, LO5-3, LO5-4, LO5-5, LO5-6, LO5-7] [The following information applies to the questions displayed below.] Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is 500 units to 1,500 units): Sales Variable expenses Contribution margin Fixed expenses Net operating income $ 15,000 9,000 6,000 3, 120 $ 2,880 Foundational 5-13 (Algo) 13. Using the degree of operating leverage, what is the estimated percent increase in net operating income that would result from a 5% increase in unit sales? Note: Round your intermediate calculations and final answer to 2 decimal places. > Answer is complete but not entirely correct. Increase in net operating income 2.40 X %
Problem 7-17 (Algo) Comparing Traditional and Activity-Based Product Margins [LO7-1, LO7-3, LO7-4, LO7-5] Smoky Mountain Corporation makes two types of hiking boots-the Xtreme and the Pathfinder. Data concerning these two product lines appear below: Selling price per unit Direct materials per unit Direct labor per unit. Direct labor-hours per unit Estimated annual production and sales Estimated total manufacturing overhead Estimated total direct labor-hours $116.00 $ $ Xtreme Batch setups (setups) Product sustaining (number of products) Other Total manufacturing overhead cost 64.00 12.00 1.5 DLHS 29,000 units The company has a traditional costing system in which manufacturing overhead is applied to units based on direct labor-hours. Data concerning manufacturing overhead and direct labor-hours for the upcoming year appear below: Activities and Activity Measures Supporting direct labor (direct labor-hours) Pathfinder $ 80.00 $ 52.00 $ 8.00 1.0 DLHS 76,000 units $ 1,912,000 119,500 DLHS…
Exercise 1-11 (Algo) Cost Behavior; Contribution Format Income Statement (LO1-4, LO1-6] Harris Company manufactures and sells a single product. A partially completed schedule of the company's total costs and costs per unit over the relevant range of 51,000 to 91,000 units is given below: Required: 1. Complete the schedule of the company's total costs and costs per unit as given in the relevant tab below. 2. Assume that the company produces and sells 81,000 units during the year at a selling price of $9.09 per unit. Prepare a contribution format income statement for the year. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Complete the schedule of the company's total costs and costs per unit as given in the relevant tab below. (Round the per unit variable cost and fixed cost to 2 decimal places.) Units Produced and Sold 71,000 Total costs Variable costs Fixed costs Total costs Cost per unit Variable cost Fixed cost Total cost per unit S S $1,000…
Sandy Bank, Inc., makes one model of wooden canoe. And, the information for it follows: Number of canoes produced and sold 400 600 750 Total costs Variable costs $ 67,500 $ 101,250 $ 126,563 Fixed costs $ 150,000 $ 150,000 $ 150,000 Total costs $ 217,500 $ 251,250 $ 276,563 Cost per unit Variable cost per unit $ 168.75 $ 168.75 $ 168.75 Fixed cost per unit 375.00 250.00 200.00 Total cost per unit $ 543.75 $ 418.75 $ 368.75 Sandy Bank sells its canoes for $550 each. Required: 1. Suppose that Sandy Bank raises its selling price to $675 per canoe. Calculate its new break-even point in units and in sales dollars. 2. If Sandy Bank sells 650 canoes, compute its margin of safety in dollars and as a percentage of sales. (Use the new sales price of $675.) 3. Calculate the number of canoes that Sandy Bank must sell at $675 each to generate $100,000 profit.
Exercise 1-11 (Algo) Cost Behavior; Contribution Format Income Statement [LO1-4, LO1-6] Harris Company manufactures and sells a single product. A partially completed schedule of the company's total costs and costs per unit over the relevant range of 70,000 to 110,000 units is given below: ces Required: 1. Complete the schedule of the company's total costs and costs per unit as given in the relevant tab below. 2. Assume that the company produces and sells 100,000 units during the year at a selling price of $8.80 per unit. Prepare a contribution format income statement for the year. Mc Graw Hill showers Complete this question by entering your answers in the tabs below. Required 1 Required 2 Complete the schedule of the company's total costs and costs per unit as given in the relevant tab below. (Round the per unit variable cost and fixed cost to 2 decimal places.) Total cost: Variable cost Fixed cost Total cost Cost per unit: Variable cost Fixed cost Total cost per unit 70,000 Units…
Riverside Inc. makes one model of wooden canoe. Partial information for it follows: Number of Canoes Produced and Sold 455 605 755 Total costs Variable costs $ 65,065 149,700 $214,765 ? Fixed costs Total costs Cost per unit Variable cost per unit Fixed cost per unit Total cost per unit ? ? ? ? ? Required: 1. Complete the table. 3. Suppose Riverside sells its canoes for $505 each. Calculate the contribution margin per canoe and the contribution margin rati 4. Next year Riverside expects to sell 805 canoes. Complete the contribution margin income statement for the company. Complete this question by entering your answers in the tabs below. Required 1 Required 3 Required 4 Complete the table. (Round your cost per unit answers to 2 decimal places.) Number of Canoes Produced and Sold 455 605 755 Total Costs Variable Costs 2$ 65,065 Fixed Costs 149,700 Total Costs $ 214,765 $ $ Cost per Unit Variable Cost per Unit Fixed Cost per Unit Total Cost per Unit $ 0.00 $ 0.00 $ 0.00 Complete this…
Sandy Bank, Incorporated, makes one model of wooden canoe. And, the information for it follows: 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 Sandy Bank sells its canoes for $375 each. 450 Required 1 Required 2 $ 69,750 $ 468,000 $ 537,750 Required 3 $ 155.00 1,040.00 $ 1,195.00 650 $ 100,750 $ 468,000 $ 568,750 $ 155.00 720.00 $ 875.00 Complete this question by entering your answers in the tabs below. 800 Required: 1. Suppose that Sandy Bank raises its selling price to $500 per canoe. Calculate its new break-even point in units and in sales 2. If Sandy Bank sells 1,500 canoes, compute its margin of safety in dollars and as a percentage of sales. (Use the new sales pr $500) 3. Calculate the number of canoes that Sandy Bank must sell at $500 each to generate $110,000 profit. $ 124,000 $ 468,000 $ 592,000 $ 155.00 585.00 $ 740.00 Suppose that Sandy Bank raises its selling…
ok nces E5-18 (Algo) Calculating Contribution Margin and Contribution Ratio, Preparing Contribution Margin Income Statement [LO 5-5] Riverside Incorporated makes one model of wooden canoe. Partial Information for it follows: 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 Unit contribution margin Contribution margin ratio Sales revenue Variable costs Gross margin Fixed costs Contribution margin Cost of goods sold Variable costs Gross margin Net operating income Scenario 1 Raises Sales Price to $730 per Canoe $ 550 540.00 $ 104,500 198,000 $ 302,500 $ 190.00 360.00 $ 550.00 Riverside sells Its canoes for $630 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. Note: Round your unit contribution margin…
E5-20 (Algo) Estimating Cost Behavior Using High-Low Method, Preparing Contribution Margin Income Statement [LO 5-3, 5-5] Anita Kaur runs a courier service in downtown Seattle. She charges clients $0.56 per mile driven. Anita has determined that if she drives 2,150 miles in a month, her total operating cost is $575. If she drives 3,250 miles in a month, her total operating cost is $751. Required: 1. Using the high-low method, determine Anita's variable and fixed operating cost components. 2. Complete the contribution margin income statement for Anita's service assuming she drove 1,300 miles last month. (Assume this falls within the relevant range of operations). Complete this question by entering your answers in the tabs below. Required 1 Required 2 Using the high-low method, determine Anita's variable and fixed operating cost components. Note: Round your cost per mile answer to 2 decimal places. Variable Cost per Mile Driven Fixed Cost