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 %
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Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
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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
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
%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F934f47dc-fbed-471a-afb0-57b8b00080e8%2Ff5c0f163-214e-40c9-b665-07f2bf55db2a%2F40snoho_processed.jpeg&w=3840&q=75)
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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