Question

Number of Canoes Produced and Sold 515 665 815 Total costs Variable costs $ 70,040 2 2 Fixed costs 149,900 2 2 Total costa $219,940 2 2 Cost per unit Variable cost per unit 2 2 2 Fixed cost per unit 2 2 Total cost per unit 2 2 2 Required: 1. Complete the table. 3. Suppose Riverside sells its canoes for $519 each. Calculate the contribution margin per canoe and the contribution margin ratio, 4. Next year Riverside expects to sell 865 canoes. Complete the contribution margin income statement for the company. + ht Complete this question by entering your answers in the tabs below. ancos Required 1 Required 3 Required 4 Complete the table. (Round your cost per unit answers to 2 decimal places.) 515 665 815 $ Number of Canoes Produced and Sold Total Costs Variable Conts Fixed Costs Total Costs Cost per Unit Variable Cost per Unit Fixed Cost per Unit Total Cost per Unit 70,040 149,900 219,040 $ < Prey 24 Nout

Answer 1

1.

Number of Caneos produced and sold	515	665	815
Total Costs
Variable cost	$70,040	$90,440	$110,840
Fixed cost	$149,900	$149,900	$149,900
Total Costs	$219,940	$240,340	$260,740
Cost per unit
Variable cost per unit	$136	$136	$136
Fixed cost per unit	$291.07	$225.41	$183.93
Total Cost per unit	$427.07	$361.41	$319.93

3

Contribution margin per unit:

= $519 - $136

= $383

Contribution margin ratio:

= $383 / $519

= 73.80%

4.

Sales	$448,935
Variable Cost	$117,640
Contribution margin	$331,295
Fixed cost	$149,900
Net operating income	$181,395