Homework Help is Here – Start Your Trial Now!
Business
Accounting
E5-18 (Algo) Calculating Contribution Margin and Contribution Ratio, Preparing Contribution Margin Income Statement [LO 5-5] Riverside Incorporated makes one model of wooden canoe. Partial information for it follows: Number of Canoes Produced and Sold 450 650 900 Total costs Variable costs Fixed costs Total costs $ 69,750 234,000 $ 303,750 $ 100,750 234,000 Cost per unit Variable cost per unit Fixed cost per unit $ 155.00 520.00 $ 675.00 $ 515.00 $ 334,750 $ 155.00 360.00 $ 139,500 234,000 $ 373,500 $ 155.00 260.00 $ 415.00 Total cost per unit Riverside sells its canoes for $750 each. Next year Riverside expects to sell 1,000 canoes. Required: Complete the Riverside's contribution margin income statement for each independent scenario. Assuming each scenario is a variation of Riverside's original data. Note: Round your unit contribution margin and contribution margin ratio to 2 decimal places (i.e. 0.1234 should be entered as 12.34%) and all other answers to the nearest dollar amount. Scenario 2 Increase Scenario 1 Raises Sales Price to $850 per Canoe Sales Price and Variable Cost per Unit by 10 Percent Unit contribution margin Contribution margin ratio % Contribution Margin Income Statement Contribution margin Net operating income % Scenario 3 Decrease Fixed Cost by 20 Percent %

E5-18 (Algo) Calculating Contribution Margin and Contribution Ratio, Preparing Contribution Margin Income Statement [LO 5-5] Riverside Incorporated makes one model of wooden canoe. Partial information for it follows: Number of Canoes Produced and Sold 450 650 900 Total costs Variable costs Fixed costs Total costs $ 69,750 234,000 $ 303,750 $ 100,750 234,000 Cost per unit Variable cost per unit Fixed cost per unit $ 155.00 520.00 $ 675.00 $ 515.00 $ 334,750 $ 155.00 360.00 $ 139,500 234,000 $ 373,500 $ 155.00 260.00 $ 415.00 Total cost per unit Riverside sells its canoes for $750 each. Next year Riverside expects to sell 1,000 canoes. Required: Complete the Riverside's contribution margin income statement for each independent scenario. Assuming each scenario is a variation of Riverside's original data. Note: Round your unit contribution margin and contribution margin ratio to 2 decimal places (i.e. 0.1234 should be entered as 12.34%) and all other answers to the nearest dollar amount. Scenario 2 Increase Scenario 1 Raises Sales Price to $850 per Canoe Sales Price and Variable Cost per Unit by 10 Percent Unit contribution margin Contribution margin ratio % Contribution Margin Income Statement Contribution margin Net operating income % Scenario 3 Decrease Fixed Cost by 20 Percent %

Survey of Accounting (Accounting I)
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter12: Differential Analysis And Product Pricing
Section: Chapter Questions
Problem 12.16E: Product cost concept of product pricing Based on the data presented in Exercise 12-15, assume that...
See similar textbooks
icon
Related questions
Question
E5-18 (Algo) Calculating Contribution Margin and Contribution Ratio, Preparing Contribution Margin Income Statement [LO 5-5] Riverside Incorporated makes one model of wooden canoe. Partial information for it follows: Number of Canoes Produced and Sold 450 650 900 Total costs Variable costs Fixed costs Total costs $ 69,750 234,000 $ 303,750 $ 100,750 234,000 Cost per unit Variable cost per unit Fixed cost per unit $ 155.00 520.00 $ 675.00 $ 515.00 $ 334,750 $ 155.00 360.00 $ 139,500 234,000 $ 373,500 $ 155.00 260.00 $ 415.00 Total cost per unit Riverside sells its canoes for $750 each. Next year Riverside expects to sell 1,000 canoes. Required: Complete the Riverside's contribution margin income statement for each independent scenario. Assuming each scenario is a variation of Riverside's original data. Note: Round your unit contribution margin and contribution margin ratio to 2 decimal places (i.e. 0.1234 should be entered as 12.34%) and all other answers to the nearest dollar amount. Scenario 2 Increase Scenario 1 Raises Sales Price to $850 per Canoe Sales Price and Variable Cost per Unit by 10 Percent Unit contribution margin Contribution margin ratio % Contribution Margin Income Statement Contribution margin Net operating income % Scenario 3 Decrease Fixed Cost by 20 Percent %
Transcribed Image Text:E5-18 (Algo) Calculating Contribution Margin and Contribution Ratio, Preparing Contribution Margin Income Statement [LO 5-5] Riverside Incorporated makes one model of wooden canoe. Partial information for it follows: Number of Canoes Produced and Sold 450 650 900 Total costs Variable costs Fixed costs Total costs $ 69,750 234,000 $ 303,750 $ 100,750 234,000 Cost per unit Variable cost per unit Fixed cost per unit $ 155.00 520.00 $ 675.00 $ 515.00 $ 334,750 $ 155.00 360.00 $ 139,500 234,000 $ 373,500 $ 155.00 260.00 $ 415.00 Total cost per unit Riverside sells its canoes for $750 each. Next year Riverside expects to sell 1,000 canoes. Required: Complete the Riverside's contribution margin income statement for each independent scenario. Assuming each scenario is a variation of Riverside's original data. Note: Round your unit contribution margin and contribution margin ratio to 2 decimal places (i.e. 0.1234 should be entered as 12.34%) and all other answers to the nearest dollar amount. Scenario 2 Increase Scenario 1 Raises Sales Price to $850 per Canoe Sales Price and Variable Cost per Unit by 10 Percent Unit contribution margin Contribution margin ratio % Contribution Margin Income Statement Contribution margin Net operating income % Scenario 3 Decrease Fixed Cost by 20 Percent %
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Survey of Accounting (Accounting I)
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
SEE MORE TEXTBOOKS