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 Total costs Cost per unit Variable cost per unit Fixed cost per unit Total cost per unit. Unit contribution margin Contribution margin ratio Contribution margin 450 Net operating income $ 67,500 374,400 $ 441,900 Scenario 1 Raises Sales Price to $1200 per Canoe $ 150.00 832.00 $ 982.00 650 $ 97,500 374,400 $ 471,900 Riverside sells its canoes for $1,100 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. $ 150.00 576.00 $ 726.00 Riverside sells its canoes for $1,100 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. Note: Round your unit contribution margin and contribution margin ratio to 2 decimal places (i.e. 0.1234 should be entered as 12.34 %) and all other answers to the nearest dollar amount. Contribution Margin Income Statement 800 Scenario 2 Increase Sales Price and Variable Cost per Unit by 10 Percent $ 120,000 374,400 $ 494,400 $ 150.00 468.00 $ 615.00 Scenario 3 Decrease Fixed Cost by 20 Percent
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 Total costs Cost per unit Variable cost per unit Fixed cost per unit Total cost per unit. Unit contribution margin Contribution margin ratio Contribution margin 450 Net operating income $ 67,500 374,400 $ 441,900 Scenario 1 Raises Sales Price to $1200 per Canoe $ 150.00 832.00 $ 982.00 650 $ 97,500 374,400 $ 471,900 Riverside sells its canoes for $1,100 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. $ 150.00 576.00 $ 726.00 Riverside sells its canoes for $1,100 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. Note: Round your unit contribution margin and contribution margin ratio to 2 decimal places (i.e. 0.1234 should be entered as 12.34 %) and all other answers to the nearest dollar amount. Contribution Margin Income Statement 800 Scenario 2 Increase Sales Price and Variable Cost per Unit by 10 Percent $ 120,000 374,400 $ 494,400 $ 150.00 468.00 $ 615.00 Scenario 3 Decrease Fixed Cost by 20 Percent
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
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Transcribed Image Text: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
Total costs
Cost per unit
Variable cost per unit
Fixed cost per unit
Total cost per unit.
Unit contribution margin
Contribution margin ratio
Contribution margin
450
Net operating income
$ 67,500
374,400
$ 441,900
Scenario 1 Raises
Sales Price to $1200
per Canoe
$ 150.00
832.00
$ 982.00
650
$ 97,500
374,400
$ 471,900
Riverside sells its canoes for $1,100 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.
$ 150.00
576.00
$ 726.00
Riverside sells its canoes for $1,100 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.
Note: Round your unit contribution margin and contribution margin ratio to 2 decimal places (i.e. 0.1234 should be entered as
12.34 %) and all other answers to the nearest dollar amount.
Contribution Margin Income Statement
800
Scenario 2 Increase
Sales Price and
Variable Cost per
Unit by 10 Percent
$ 120,000
374,400
$ 494,400
$ 150.00
468.00
$ 615.00
Scenario 3
Decrease Fixed
Cost by 20 Percent
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