Riverside Inc. makes one model of wooden canoe. Partial information for it follows: Number of Canoes 400 Produced and Sold Total costs 600 750 Variable $ 50,000 $ 75,000 $ 93,750 costs Fixed costs 90,000 90,000 90,000 Total costs $ 140,000 $ 165,000 $ 183,750 Cost per unit Variable cost $ 125.00 $ 125.00 $ 125.00 per unit Fixed cost 225.00 150.00 120.00 per unit Total cost per unit $ 350.00 $ 275.00 $ 245.00 Riverside 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 a variation of Riverside's original data. (Round your unit contribution 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.)
Riverside Inc. makes one model of wooden canoe. Partial information for it follows: Number of Canoes 400 Produced and Sold Total costs 600 750 Variable $ 50,000 $ 75,000 $ 93,750 costs Fixed costs 90,000 90,000 90,000 Total costs $ 140,000 $ 165,000 $ 183,750 Cost per unit Variable cost $ 125.00 $ 125.00 $ 125.00 per unit Fixed cost 225.00 150.00 120.00 per unit Total cost per unit $ 350.00 $ 275.00 $ 245.00 Riverside 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 a variation of Riverside's original data. (Round your unit contribution 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.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Riverside Inc. makes one model of wooden canoe. Partial information for it follows:
Number of
Canoes
400
Produced
and Sold
Total costs
600
750
Variable
$
50,000
$
75,000
$
93,750
costs
Fixed costs
90,000
90,000
90,000
Total costs
$
140,000 $
165,000 $
183,750
Cost per unit
Variable cost
$
125.00
$
125.00
$
125.00
per unit
Fixed cost
225.00
150.00
120.00
per unit
Total cost
per unit
$
350.00
$
275.00
$
245.00
Riverside 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 a variation of Riverside's original data. (Round your unit contribution 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.)
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