porated makes one model of wooden canoe. Partial information for it follows: noes Produced and Sold sts 450 $ 65,250 200 000 650 $ 94,250 200 800 $ 116,000
porated makes one model of wooden canoe. Partial information for it follows: noes Produced and Sold sts 450 $ 65,250 200 000 650 $ 94,250 200 800 $ 116,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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E5-18 (Algo) Calculating Contribution Margin and Contribution Ratio, Preparing
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
Unit contribution margin
Contribution margin ratio
450
Scenario 1 Raises
Sales Price to $900
per Canoe
$ 65,250
280,800
$ 346,050
$ 145.00
624.00
$ 769.00
Total costs
Cost per unit
Variable cost per unit
Fixed cost per unit
Total cost per unit
Riverside sells its canoes for $800 each. Next year Riverside expects to sell 1,000 canoes.
Required:
Complete the Riverside's contribution margin income statement for each independent scenario. Assum
of Riverside's original data.
Note: Round your unit contribution margin and contribution margin ratio to 2 decimal places (i.e. 0.-
12.34%) and all other answers to the nearest dollar amount.
650
$ 94,250
280,800
$375,050
%
Contribution Margin Income Statement
145.00
432.00
$ 577.00
Scenario 2 Increase
Sales Price and
Variable Cost per
Unit by 10 Percent
%
800
$ 116,000
280,800
$ 396,800
$ 145.00
351.00
$ 496.00
Scenario 3
Decrease Fixed
Cost by 20 Percent
%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb92c7379-e86a-4aad-93a5-9dd6eaca4770%2Fdedfb076-0f61-4573-9c61-db9bece40634%2Fis5mk9n_processed.jpeg&w=3840&q=75)
Transcribed Image Text:S
E5-18 (Algo) Calculating Contribution Margin and Contribution Ratio, Preparing
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
Unit contribution margin
Contribution margin ratio
450
Scenario 1 Raises
Sales Price to $900
per Canoe
$ 65,250
280,800
$ 346,050
$ 145.00
624.00
$ 769.00
Total costs
Cost per unit
Variable cost per unit
Fixed cost per unit
Total cost per unit
Riverside sells its canoes for $800 each. Next year Riverside expects to sell 1,000 canoes.
Required:
Complete the Riverside's contribution margin income statement for each independent scenario. Assum
of Riverside's original data.
Note: Round your unit contribution margin and contribution margin ratio to 2 decimal places (i.e. 0.-
12.34%) and all other answers to the nearest dollar amount.
650
$ 94,250
280,800
$375,050
%
Contribution Margin Income Statement
145.00
432.00
$ 577.00
Scenario 2 Increase
Sales Price and
Variable Cost per
Unit by 10 Percent
%
800
$ 116,000
280,800
$ 396,800
$ 145.00
351.00
$ 496.00
Scenario 3
Decrease Fixed
Cost by 20 Percent
%
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