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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 Gro margin Net operating income Scenario 1 Raises Sales Price to $730 per Canoe S 550 540.00 $ 104,500 198,000 $ 302,500 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 scenarlo is a of Riverside's original data. variation Note: Round your unit contribution margin and contribution margin ratlo to 2 decimal places (1.e. 0.1234 should be entered as 12.34%) and all other answers to the nearest dollar amount. $ 190.00 360.00 $ 550.00 750 $ 142,500 198,000 $ 340,500 % Contribution Margin Income Statement $ 190.00 264.00 $ 454.00 Scenario 2 Increase Sales Price and Variable Cost per Unit by 10 Percent S 396.00 900 % $ 171,000 198,000 $369,000 $ 190.00 220.00 $ 410.00 Scenario 3 Decrease Fixed Cost by 20 Percent %

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 Gro margin Net operating income Scenario 1 Raises Sales Price to $730 per Canoe S 550 540.00 $ 104,500 198,000 $ 302,500 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 scenarlo is a of Riverside's original data. variation Note: Round your unit contribution margin and contribution margin ratlo to 2 decimal places (1.e. 0.1234 should be entered as 12.34%) and all other answers to the nearest dollar amount. $ 190.00 360.00 $ 550.00 750 $ 142,500 198,000 $ 340,500 % Contribution Margin Income Statement $ 190.00 264.00 $ 454.00 Scenario 2 Increase Sales Price and Variable Cost per Unit by 10 Percent S 396.00 900 % $ 171,000 198,000 $369,000 $ 190.00 220.00 $ 410.00 Scenario 3 Decrease Fixed Cost by 20 Percent %

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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 and contribution margin ratio to 2 decimal places (1.e. 0.1234 should be entered as 12.34%) and all other answers to the nearest dollar amount. S $ 142,500 198,000 $ 340,500 750 Scenario 2 Increase Sales Price and Variable Cost per Unit by 10 Percent 396.00 % Contribution Margin Income Statement $190.00 264.00 $ 454.00 % 900 $ 171,000 198,000 $369,000 $190.00 220.00 $410.00 Scenario 3 Decrease Fixed Cost by 20 Percent %
Transcribed Image Text: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 and contribution margin ratio to 2 decimal places (1.e. 0.1234 should be entered as 12.34%) and all other answers to the nearest dollar amount. S $ 142,500 198,000 $ 340,500 750 Scenario 2 Increase Sales Price and Variable Cost per Unit by 10 Percent 396.00 % Contribution Margin Income Statement $190.00 264.00 $ 454.00 % 900 $ 171,000 198,000 $369,000 $190.00 220.00 $410.00 Scenario 3 Decrease Fixed Cost by 20 Percent %
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