Question

Riverside Inc. makes one model of wooden canoe. Partial information for it follows: Number of Canoes Produced and Sold 530 680 830 Total costs Variable costs $ 69,960 ? ? Fixed costs 148,800 ? ? Total costs $ 218,760 ? ? 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 $501 each. Calculate the contribution margin per canoe and the contribution margin ratio. 4. Next year Riverside expects to sell 880 canoes. Complete the contribution margin income statement for the company.

	Number of Canoes Produced and Sold 530 680 830 Total Costs Variable Costs $69,960 Fixed Costs 148,800 Total Costs $218,760 $0 $0 Cost per Unit Variable Cost per Unit Fixed Cost per Unit Total Cost per Unit $0.00 $0.00 $0.00

Suppose Riverside sells its canoes for $501 each. Calculate the contribution margin per canoe and the contribution margin ratio. (Round your contribution margin to the nearest whole dollar and your contribution margin ratio to the nearest whole percent.)

	Unit Contribution Margin per canoe Contribution Margin Ratio %

Next year Riverside expects to sell 880 canoes. Complete the contribution margin income statement for the company. (Round your Contribution margin to 2 decimal places.)

	RIVERSIDE INC. Contribution Margin Income Statement For the Next Year Contribution Margin Net Operating Income

Answer 1

530 680 830 Question-1 Number of Canoes Produced and sold Total Cost Variable Cost Fixed cost Total Cost cost per unit Variable cost per unit Fixed cost Per unit Total Cost Per unit 69960 148800 218760 89760 148800 238560 109560 148800 258360 132.00 280.75 412.75 132.00 218.82 350.82 132.00 179.28 311.28 Question -2 Units Contribution (501-132) 369 Per Canoe Contribution Margin ratio (369/501) 74% Question -3 (for 880Canoe) contribution Margin Income Statement 73.65% sales Revenue Variable Cost Contribution Margin Fixed cost Income From Operations 440880880*501 116160 880*132 324720 148800 175920