Riverside Inc. makes one model of wooden canoe. Partial information for it follows: 450 650 800 Number of Canoes Produced and Sold Total costs Variable costs $ 72,000 $ 104,000 $ 128,000 187,200 $259,200 $ 291,200 $ 315,200 Fixed costs 187,200 187,200 Total costs Cost per unit Variable cost per unit Fixed cost per unit $ 160.00 $ 160.00 416.00 $ 160.00 234.00 288.00 Total cost per unit $ 576.00 $ 448.00 $ 394.00 Riverside sells its canoes for $680 each. Next year Riverside expects to sell 1,000 canoes. Riverside sells its canoes for $680 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. (Round your unit contribu margin and contribution margin ratio to two decimal places (i.e. .1234 should be entered as 12.34%) and all other answers to the nearest dollar amount.) Scenario 2 Scenario 1 Raises Sales Price to $780 per Canoe Increase Sales Price and Variable Cost per Unit by 10 Percent Scenario 3 Decrease Fixed Cost by 20 Percent Unit Contribution Margin Contribution Margin Ratio Contribution Margin Income Statement Contribution Margin Net Operating Income
Riverside Inc. makes one model of wooden canoe. Partial information for it follows: 450 650 800 Number of Canoes Produced and Sold Total costs Variable costs $ 72,000 $ 104,000 $ 128,000 187,200 $259,200 $ 291,200 $ 315,200 Fixed costs 187,200 187,200 Total costs Cost per unit Variable cost per unit Fixed cost per unit $ 160.00 $ 160.00 416.00 $ 160.00 234.00 288.00 Total cost per unit $ 576.00 $ 448.00 $ 394.00 Riverside sells its canoes for $680 each. Next year Riverside expects to sell 1,000 canoes. Riverside sells its canoes for $680 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. (Round your unit contribu margin and contribution margin ratio to two decimal places (i.e. .1234 should be entered as 12.34%) and all other answers to the nearest dollar amount.) Scenario 2 Scenario 1 Raises Sales Price to $780 per Canoe Increase Sales Price and Variable Cost per Unit by 10 Percent Scenario 3 Decrease Fixed Cost by 20 Percent Unit Contribution Margin Contribution Margin Ratio Contribution Margin Income Statement Contribution Margin Net Operating Income
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please refer to the two attachments and complete the boxes in the second attachment. Thank you
Transcribed Image Text:Riverside Inc. makes one model of wooden canoe. Partial information for it follows:
450
650
800
Number of Canoes Produced and Sold
Total costs
Variable costs
$ 72,000 $ 104,000 $ 128,000
187,200
$259,200 $ 291,200 $ 315,200
Fixed costs
187,200
187,200
Total costs
Cost per unit
Variable cost per unit
Fixed cost per unit
$ 160.00 $ 160.00
416.00
$ 160.00
234.00
288.00
Total cost per unit
$ 576.00 $ 448.00 $ 394.00
Riverside sells its canoes for $680 each. Next year Riverside expects to sell 1,000 canoes.
Transcribed Image Text:Riverside sells its canoes for $680 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. (Round your unit contribu
margin and contribution margin ratio to two decimal places (i.e. .1234 should be entered as 12.34%) and all other answers to the nearest dollar amount.)
Scenario 2
Scenario 1
Raises Sales
Price to $780
per Canoe
Increase Sales
Price and
Variable Cost
per Unit by 10
Percent
Scenario 3
Decrease
Fixed Cost by
20 Percent
Unit Contribution Margin
Contribution Margin Ratio
Contribution Margin Income Statement
Contribution Margin
Net Operating Income
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