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E5-14 Determining Cost Behavior, Preparing Contribution Margin Income Statement [LO 5-1, 5-5] Riverside Inc. makes one model3. Suppose Riverside sells its canoes for $513 each. Calculate the contribution margin per canoe and the contribution margin

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Ans 1
Number of unit 455 605 755
Total cost
Variable cost 63700          84,700        105,700
Fixed cost 148300        148,300        148,300
total cost 212000 233000 254000
Cost per unit
Variable cost per unit     140.00          140.00          140.00
Fixed cost per unit     325.93          245.12          196.42
Total cost per unit     465.93          385.12          336.42
Ans 3
Unit contribution margin = (513-140)               373
Contribution margin ratio = 373/513 73%
Ans 4
Contribution margin income statement -
Sales 412965
Variable cost 112700
Contribution margin 300265
Fixed cost 148300
Net operating income 151965
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