Question

Number of Canoes Produced and sold 485 635 785 Total costs Variable costs $ 71,780 Fixed costs 150,000 Total costs $221,780 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 $518 each. Calculate the contribution margin per canoe and the contribution margin ratio. 4. Next year Riverside expects to sell 835 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.) Canons Produced and Sold 485 635 785 $ 71.780 150,000/ 221.780 Total Costs Variable Costs Fixed Costs Total Costs Cost per Unit Variable Cost per Unit Fixed Cost per Unit S Total Cost per Unit

Answer 1

485 635 785 93,980 Table Particulars Total costs Variable costs Fixed costs Total costs Cost per unit :- Variable cost per unit Fixed cost per unit Total cost per unit 71,780 150,000 221,780 150,000 243,980 116,180 150,000 266,180 148.00 148.00 148.00 309.28 457.28 191.08 236.22 384.22 339.08 Note: Variable cost per unit remains same at every level of activity, where as fixed cost per unit decreases as volume increases and total fixed cost remains same at every level of activity. Contribution margin per canoe and contribution margin ratio :- Particulars Amount $ % Sales price per canoe 518.00 Less: Variable cost per canoe 148.00 Contribution margin per canoe 370.00 Contribution margin ratio (370/518)*100 71.43% Contribution margin income statemene :- Particulars Amounts Sales Revenue (835*518) 432,530 Less: Variable cost (835*148) 123,580 Contribution margin 308,950 Less: Fixed cost 150,000 Operating Income 158,950