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 550 $ 112,750 148,500 $ 261,250 $ 205.00 270.00 $ 475.00 750 $ 153,750 148,500 $ 302,250 $ 205.00 198.00 $ 403.00 900 $ 184,500 148,500 $333,000 $ 205.00 165.00 $ 370.00 Riverside sells its canoes for $550 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.

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 550 $ 112,750 148,500 $ 261,250 $ 205.00 270.00 $ 475.00 750 $ 153,750 148,500 $ 302,250 $ 205.00 198.00 $ 403.00 900 $ 184,500 148,500 $333,000 $ 205.00 165.00 $ 370.00 Riverside sells its canoes for $550 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.

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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es 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 550 $ 112,750 148,500 $ 261,250 Unit contribution margin Contribution margin ratio Scenario 1 Raises Sales Price to $650 per Canoe Total costs Cost per unit Variable cost per unit, Fixed cost per unit Total cost per unit Riverside sells its canoes for $550 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. $ 205.00 270.00 $ 475.00 750 $ 153,750 148,500 $ 302,250 $ 205.00 198.00 $ 403.00 % Contribution Margin Income Statement Note: Round your unit contribution margin and contribution margin ratio to 2 decimal places (i.e.…
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…
E5-18 (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 450 650 900 Total costs Variable costs Fixed costs Total costs $ 69,750 234,000 $ 303,750 $ 100,750 234,000 Cost per unit Variable cost per unit Fixed cost per unit $ 155.00 520.00 $ 675.00 $ 515.00 $ 334,750 $ 155.00 360.00 $ 139,500 234,000 $ 373,500 $ 155.00 260.00 $ 415.00 Total cost per unit Riverside sells its canoes for $750 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 and contribution margin ratio to 2 decimal places (i.e. 0.1234 should be entered as 12.34%) and all other answers to the nearest dollar amount.…
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.
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 400 Scenario 1 Raises Sales Price to $760 per Canoe $ 52,000 180,000 $ 232,000 $ 130.00 450.00 $580.00 600 $ 78,000 180,000 $ 258,000 Contribution Margin Income Statement $130.00 300.00 $ 430.00 Riverside sells its canoes for $660 each. Next year Riverside expects to sell 1,000 canoes. Required: Complete the Riverside's contribution margin income statement for each independent scenarlo. Assuming each scenario is of Riverside's original data. Note: Round your unit contribution margin and contribution margin ratio to 2 decimal places (i.e. 0.1234 should be ente 12.34 %) and all other answers to the nearest dollar amount. Scenario 2 Increase Sales Price and Variable Cost per Unit by 10…
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 i Contribution margin Net operating income 550 Scenario 1 Raises Sales Price to $560 per Canoe $ 110,000 99,000 $ 209,000 $ 200.00 180.00 $ 380.00 750 $ 150,000 99,000 $ 249,000 Riverside sells its canoes for $460 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 and contribution margin ratio to 2 decimal places (i.e. 0.1234 should be entered as 12.34%) and all other answers to the nearest dollar amount. Contribution Margin Income Statement $ 200.00 132.00 $ 332.00…
Sandy Bank, Inc., makes one model of wooden canoe. and, the information for it follows: Number of canoes produced and sold Total costs 450 650 800 Variable costs $ 69,750 $ 468,000 $100,750 $468,000 $124,000 $468,000 Fixed costs $537,750 $568,750 $592,000 Total costs Cost per unit Variable cost per unit Fixed cost per unit $ 155.00 155.00 155.00 720.00 1,040.00 585.00 $ 875.00 Total cost per unit $1,195.00 $ 740.00 Sandy Bank sells its canoes for $375 each. 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. 2. If Sandy Bank sells 1,500 canoes, compute its margin of safety in units and as a percentage of sales. (Use the new sales price of $500.) 3. Calculate the number of canoes that Sandy Bank must sell at $500 each to generate $110,000 profit.
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.
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…
PA6-1 (Algo) Calculating Contribution Margin, Contribution Margin Ratio, Break-Even Point [LO 6-1, 6-2] Hermosa, Incorporated produces one model of mountain bike. Partial information for the company follows: Number of bikes produced and sold Total costa Variable costs Fixed costs per year Total costs Cost per unit Variable cost per unit Fixed cost per unit Total cost per unit. Required: 1. Complete the table.. 2. Calculate Hermosa's contribution margin ratio and its total contribution margin at each sales level indicated in the table assuming the company sells each bike for $800. 4. Calculate Hermosa's break-even point in units and sales revenue. Number of bikes produced and sold Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 4 Complete the table. Note: Round your "Cost per Unit" answers to 2 decimal places. 510 Units Total costs Variable costs Fixed costs per year Total costs Cost per unit 510 $ 124,440 Variable cost per unit Fixed…
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…
Sandy Bank, Inc., makes one model of wooden canoe. and, the information for it follows: Number of canoes produced and sold Total costs 400 600 750 $ 50,000 $ 90,000 $ 75,000 $ 90,000 $ 93,750 $ 90,000 Variable costs Fixed costs Total costs $140,000 $165,000 $183,750 Cost per unit Variable cost per unit Fixed cost per unit $ 125.00 120.00 $ 125.00 $ 125.00 225.00 150.00 Total cost per unit $ 350.00 $ 275.00 $ 245.00 Sandy Bank sells its canoes for $375 each. 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. 2. If Sandy Bank sells 670 canoes, compute its margin of safety in dollars and as a percentage of sales. (Use the new sales price of $500.) 3. Calculate the number of canoes that Sandy Bank must sell at $500 each to generate $100,000 profit. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Suppose that Sandy Bank raises its selling price…