**Riverside Inc. Canoe Production Analysis**Riverside Inc. manufactures a single model of a wooden canoe. The table below provides partial cost information related to different levels of production and sales: 540, 690, and 840 units.### Cost Breakdown Table| Number of Canoes Produced and Sold | 540 | 690 | 840 ||------------------------------------|-----------|-----------|-----------|| **Total Costs** | | | || Variable Costs | $78,300 | ? | ? || Fixed Costs | $148,300 | ? | ? || **Total Costs** | $226,600 | ? | ? || | | | || **Cost per Unit** | | | || Variable Cost per Unit | ? | ? | ? || Fixed Cost per Unit | ? | ? | ? || Total Cost per Unit | ? | ? | ? |### Tasks1. **Complete the Table:** - Calculate missing values for variable and fixed costs at different production levels. - Determine costs per unit.2. **Calculate Contribution Margin:** - Assuming canoes are sold at $515 each, compute the contribution margin per canoe. - Determine the contribution margin ratio.3. **Prepare Income Statement for Future Sales:** - Riverside expects to sell 890 canoes in the upcoming year. - Complete the contribution margin income statement using projected sales data.**Contribution Margin Income Statement****Riverside Inc.**- For the Next Year: - [Provide sections for sales, variable expenses, and fixed expenses] - Calculate the contribution margin - Determine net operating income**Note:**- Ensure calculations are rounded to 2 decimal places where applicable. **Riverside Inc. Canoe Production Analysis**Riverside Inc. produces one model of wooden canoe. The production and sales data for different quantities are provided below:### Production and Cost Information#### Number of Canoes Produced and Sold- **Quantities:** 540, 690, 840#### Total Costs Breakdown- **Variable Costs:** - 540 canoes: $78,300 - 690 and 840 canoes: To be calculated- **Fixed Costs:** - 148,300 for each production level - Total costs for 540 canoes: $226,600 - Total costs for 690 and 840 canoes: To be calculated#### Cost per Unit- **Variable Cost per Unit:** To be calculated- **Fixed Cost per Unit:** To be calculated- **Total Cost per Unit:** To be calculated for each production level### Tasks1. **Complete the Table:** - Calculate the missing variable and fixed costs, as well as total costs per unit based on the given information.2. **Sales Price and Contribution Margin:** - Riverside sells each canoe for $515. - Calculate the contribution margin per canoe. - Determine the contribution margin ratio.3. **Projection for Next Year:** - Riverside anticipates selling 890 canoes. - Prepare a contribution margin income statement for the projected sales.### Instructions- Use the tabs to enter the required information for each question.- Round your cost per unit answers to 2 decimal places.This analysis aims to provide a comprehensive understanding of the cost structure and profitability for Riverside Inc.'s canoe production, aiding in financial decision-making and forecasting.

The income statement is prepared to find net income or losses incurred during the period.

Answered: Riverside Inc. makes one model of…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Riverside Inc. makes one model of wooden canoe. Partial information for it follows: Number of Canoes Produced and Sold 540 690 840 Total costs Variable costs Fixed costs Total costs $ 78,300 148, 300 $226,600 Cost per unit Variable cost per unit Fixed cost per unit Total cost per unit Reguired: