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	$	77,910		?		?
Fixed costs		149,900		?		?
Total costs	$	227,810		?		?
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 $510 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.

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.)

	Number of Canoes Produced and Sold 530 680 830 Total Costs Variable Costs $77,910 Fixed Costs 149,900 Total Costs $227,810 $0 $0 Cost per Unit Variable Cost per Unit Fixed Cost per Unit Total Cost per Unit $0.00 $0.00 $0.00

• Required 3
• Required 4

Suppose Riverside sells its canoes for $510 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 %

• Required 4

Suppose Riverside sells its canoes for $510 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 %

Answer 1

Requirement 1 Variable Costs Fixed Costs Total Costs Variable Cost per Unit Fixed Cost per Unit Total Cost per Unit Units Produced and Sold 530 680 830 77910 99960 122010 149900 149900 149900 227810 249860 271910 147 147 147 282.83 220.44 180.60 429.83 367.44 327.60 510 Requirement 2 Selling Price Less: Variable Costs Contribution Margin Contribution Margin Ratio 147 363 =363/510 71% Requirement 3 880 canoes Per Unit 510 147 Sales Less: Variable Cost Contribution margin Less: Fixed Costs Net Income 363 448800 129360 319440 149900 169540

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