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 Scenario 1 Raises Sales Price to $750 per Canoe 500 S $ 92,500 178,500 $ 271,000 565-000 $185.00 357.00 $542.00 Riverside sells its canoes for $650 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. 565.00 75.33 % Contribution Margin Income Statement S 750,000 $ 715,000 $ 129,500 178,500 $308,000 Scenario 2 Increase Sales Price and Variable Cost per Unit by 10 Percent S 700 $185.00 255.00 $ 440.00 $5,115,000 511.50 71.54 % $ 17 $ 157,250 178,500 $ 335,750 S 850 $185.00 210.00 $395.00 Scenario 3 Decrease Fixed Cost by 20 Percent 465.00 71.54% 650,000 S 650,000
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 Scenario 1 Raises Sales Price to $750 per Canoe 500 S $ 92,500 178,500 $ 271,000 565-000 $185.00 357.00 $542.00 Riverside sells its canoes for $650 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. 565.00 75.33 % Contribution Margin Income Statement S 750,000 $ 715,000 $ 129,500 178,500 $308,000 Scenario 2 Increase Sales Price and Variable Cost per Unit by 10 Percent S 700 $185.00 255.00 $ 440.00 $5,115,000 511.50 71.54 % $ 17 $ 157,250 178,500 $ 335,750 S 850 $185.00 210.00 $395.00 Scenario 3 Decrease Fixed Cost by 20 Percent 465.00 71.54% 650,000 S 650,000
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter21: Variable Costing For Management
analysis
Section: Chapter Questions
Problem 5BE: Contribution margin by segment The following information is for LaPlanche Industries Inc.: Determine...
Related questions
Question
![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 $750
per Canoe
$
565.00
75,33 %
$
500
Riverside sells its canoes for $650 each. Next year Riverside expects to sell 1,000 canoes.
$ 92,500
178,500
$ 271,000
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.
565,000
$185.00
357.00
$ 542.00
$ 386,500
Contribution Margin Income Statement
750,000
$
Scenario 2 Increase
Sales Price and
Variable Cost per
Unit by 10 Percent
$
$ 129,500
178,500
$308,000
511.50
71.54%
715,000
700
$185.00
255.00
$ 440.00
$5,115,000
$ 333,000
$ 157,250
178,500
$ 335,750
$185.00
210.00
$395.00
$
850
Scenario 3
Decrease Fixed
Cost by 20 Percent
465.00
71.54 %
$ 650,000
$ 650,000
$ 322,200](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0dd647a2-8d06-4203-b234-b63f997a97c9%2Fd744918b-78bd-4d6c-8361-d31cf5645ceb%2Fo871twh_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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 $750
per Canoe
$
565.00
75,33 %
$
500
Riverside sells its canoes for $650 each. Next year Riverside expects to sell 1,000 canoes.
$ 92,500
178,500
$ 271,000
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.
565,000
$185.00
357.00
$ 542.00
$ 386,500
Contribution Margin Income Statement
750,000
$
Scenario 2 Increase
Sales Price and
Variable Cost per
Unit by 10 Percent
$
$ 129,500
178,500
$308,000
511.50
71.54%
715,000
700
$185.00
255.00
$ 440.00
$5,115,000
$ 333,000
$ 157,250
178,500
$ 335,750
$185.00
210.00
$395.00
$
850
Scenario 3
Decrease Fixed
Cost by 20 Percent
465.00
71.54 %
$ 650,000
$ 650,000
$ 322,200
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub