Riverside Inc. makes one model of wooden canoe. Partial information for it follows:600Number of Canoes Produced and Sold400Total costsFixed costsTotal costsVariable costs$ 50,000 $ 75,00090,000$140,00090,000$165,000Cost per unitVariable cost per unitFixed cost per unitTotal cost per unit$ 125.00225.00$ 125.00150.00$ 350.00 $ 275.00750$ 93,75090,000$183,750$ 125.00120.00$ 245.00Riverside sells its canoes for $430 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 avariation of Riverside's original data. (Round your unit contribution margin and contribution margin ratio to 2 decimalplaces (i.e. .1234 should be entered as 12.34%) and all other answers to the nearest dollar amount.)Unit Contribution MarginScenario 1 RaisesSales Price to $530per CanoeScenario 2 IncreaseSales Price andVariable Cost perUnit by 10 PercentScenario 3Decrease FixedCost by 20 Percent+Contribution Margin Ratio%Contribution Margin Income Statement%%

Scenario 1Scenario 2Scenario 3Unit Contribution margin$405$335.50$305Contribution Margin…

Answered: Riverside Inc. makes one model of…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Sandy Bank, Inc., makes one model of wooden canoe. And, the information for it follows: Number of canoes produced and sold 550 750 900 Total costs Variable costs $ 110,000 $ 150,000 $ 180,000 Fixed costs $ 99,000 $ 99,000 $ 99,000 Total costs $ 209,000 $ 249,000 $ 279,000 Cost per unit Variable cost per unit $ 200.00 $ 200.00 $ 200.00 Fixed cost per unit 180.00 132.00 110.00 Total cost per unit $ 380.00 $ 332.00 $ 310.00 Required:1. Suppose that Sandy Bank raises its selling price to $500 per canoe. Calculate its new break-even point in units and in sales dollars. (Do not round intermediate calculations. Round your final answers to nearest whole number.) 2. If Sandy Bank sells 1,590 canoes, compute its margin of safety in dollars and as a percentage of sales. (Use the new sales price of $500.) (Round your answers to the nearest whole number.) 3. Calculate the number of…
Parker Pottery produces a line of vases and a line of ceramic figurines. Each line uses the same equipment and labor; hence, there are no traceable fixed costs. Common fixed cost equals $40,000. Parker's accountant has begun to assess the profitability of the two lines and has gathered the following data for last year: VasesFigurinesPrice$40$70Variable cost3042Contribution margin$10$28Number of units1,000500 Required: If required, round your final answers to nearest whole value. 1. Compute the number of vases and the number of figurines that must be sold for the company to break even. Break-even vasesfill in the blank 1 unitsBreak-even figurinesfill in the blank 2 units 2. Parker Pottery is considering upgrading its factory to improve the quality of its products. The upgrade will add $5,260 per year to total fixed cost. If the upgrade is successful, the projected sales of vases will be 1,500, and figurine sales will increase to 1,000 units. What is the new break-even point in…
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Sandy Bank, Inc., makes one model of wooden canoe. And, the information for it follows: Number of canoes produced and sold 400 600 750 Total costs Variable costs $ 67,500 $ 101,250 $ 126,563 Fixed costs $ 150,000 $ 150,000 $ 150,000 Total costs $ 217,500 $ 251,250 $ 276,563 Cost per unit Variable cost per unit $ 168.75 $ 168.75 $ 168.75 Fixed cost per unit 375.00 250.00 200.00 Total cost per unit $ 543.75 $ 418.75 $ 368.75 Sandy Bank sells its canoes for $550 each. Required: 1. Suppose that Sandy Bank raises its selling price to $675 per canoe. Calculate its new break-even point in units and in sales dollars. 2. If Sandy Bank sells 650 canoes, compute its margin of safety in dollars and as a percentage of sales. (Use the new sales price of $675.) 3. Calculate the number of canoes that Sandy Bank must sell at $675 each to generate $100,000 profit.
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Riverside Inc. makes one model of wooden canoe. Partial information for it follows: Number of Canoes Produced and Sold 455 605 755 Total costs Variable costs $ 65,065 149,700 $214,765 ? Fixed costs Total costs Cost per unit Variable cost per unit Fixed cost per unit Total cost per unit ? ? ? ? ? Required: 1. Complete the table. 3. Suppose Riverside sells its canoes for $505 each. Calculate the contribution margin per canoe and the contribution margin rati 4. Next year Riverside expects to sell 805 canoes. Complete the contribution margin income statement for the company. Complete this question by entering your answers in the tabs below. Required 1 Required 3 Required 4 Complete the table. (Round your cost per unit answers to 2 decimal places.) Number of Canoes Produced and Sold 455 605 755 Total Costs Variable Costs 2$ 65,065 Fixed Costs 149,700 Total Costs $ 214,765 $ $ Cost per Unit Variable Cost per Unit Fixed Cost per Unit Total Cost per Unit $ 0.00 $ 0.00 $ 0.00 Complete this…
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Oriental Furnitures makes three types of quality wooden furniture. Information for these three products are shown below: A1 A2 A3 Total Selling price per unit $200 $500 $1 000 Variable cost per unit $60 $250 $600 Expected unit sales (annual) 15,000 7,000 2,000 24,000 Sales mix 60 percent 30 percent 10 percent 100 percent Total annual fixed costs are $4,000,000. Assume the sales mix remains the same at all levels of sales. Required: SHOW YOUR WORKINGS FOR ALL SECTIONS Calculate the weighted average unit contribution margin, assuming a constant sales mix.
Sandy Bank, Incorporated, makes one model of wooden canoe. And, the 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 Sandy Bank sells its canoes for $375 each. 450 Required 1 Required 2 $ 69,750 $ 468,000 $ 537,750 Required 3 $ 155.00 1,040.00 $ 1,195.00 650 $ 100,750 $ 468,000 $ 568,750 $ 155.00 720.00 $ 875.00 Complete this question by entering your answers in the tabs below. 800 Required: 1. Suppose that Sandy Bank raises its selling price to $500 per canoe. Calculate its new break-even point in units and in sales 2. If Sandy Bank sells 1,500 canoes, compute its margin of safety in dollars and as a percentage of sales. (Use the new sales pr $500) 3. Calculate the number of canoes that Sandy Bank must sell at $500 each to generate $110,000 profit. $ 124,000 $ 468,000 $ 592,000 $ 155.00 585.00 $ 740.00 Suppose that Sandy Bank raises its selling…
Rose-Hulman Ventures developed a prototype product for a start-up medical device company. A few years later, the company was selling three products (X, Y, & Z) with the following characteristics: Selling Price per Unit Variable Cost per Unit Machine-Hours per Unit X $10.00 $6.00 2 Products Y $15.00 $10.00 4 Z $20.00 $10.00 10 The company has a capacity of 2,000 machine hours, but there is virtually unlimited demand for each product. In order to maximize total contribution margin, how many units of each product should the company produce?

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