Riverside Inc. makes one model of wooden canoe. Partial information for it follows:Number of Canoes Produced and SoldTotal costsVariable costsFixed costs550750900$110,00099,000$150,000$180,00099,000$209,000 $249,000 $279,00099,000Total costsCost per unitVariable cost per unit$ 200.00$ 200.00132.00$ 332.00$ 200.00Fixed cost per unit180.00110.00Total cost per unit$ 380.00310.00Riverside sells its canoes for $460 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 variationof Riverside's original data. (Round your unit contribution margin and contribution margin ratio to 2 decimal places (i.e. 1234should be entered as 12.34%) and all other answers to the nearest dollar amount.)Scenario 2 IncreaseScenario 1 RaisesScenario 3Sales Price andVariable Cost perUnit by 10 PercentSales Price to $560Decrease Fixedper CanoeCost by 20 PercentUnit Contribution MarginContribution Margin Ratio%Contribution Margin Income StatementContribution MarginNet Operating Income

The contribution margin is calculated as difference between sales revenue and variable cost.

Answered: Riverside Inc. makes one model of…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 8MC: What is the conversion cost to manufacture insulated travel cups if the costs are: direct materials,...

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Sandy Bank, Inc., makes one model of wooden canoe. and, the information for it follows: Number of canoes produced and sold Total costs 400 600 750 $ 50,000 $ 90,000 $ 75,000 $ 90,000 $ 93,750 $ 90,000 Variable costs Fixed costs Total costs $140,000 $165,000 $183,750 Cost per unit Variable cost per unit Fixed cost per unit $ 125.00 120.00 $ 125.00 $ 125.00 225.00 150.00 Total cost per unit $ 350.00 $ 275.00 $ 245.00 Sandy Bank sells its canoes for $375 each. Required: 1. Suppose that Sandy Bank raises its selling price to $500 per canoe. Calculate its new break-even point in units and in sales dollars. 2. If Sandy Bank sells 670 canoes, compute its margin of safety in dollars and as a percentage of sales. (Use the new sales price of $500.) 3. Calculate the number of canoes that Sandy Bank must sell at $500 each to generate $100,000 profit. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Suppose that Sandy Bank raises its selling price…
Sandy Bank, Inc., makes one model of wooden canoe. and, the information for it follows: Number of canoes produced and sold Total costs 450 650 800 Variable costs $ 69,750 $ 468,000 $100,750 $468,000 $124,000 $468,000 Fixed costs $537,750 $568,750 $592,000 Total costs Cost per unit Variable cost per unit Fixed cost per unit $ 155.00 155.00 155.00 720.00 1,040.00 585.00 $ 875.00 Total cost per unit $1,195.00 $ 740.00 Sandy Bank sells its canoes for $375 each. Required: 1. Suppose that Sandy Bank raises its selling price to $500 per canoe. Calculate its new break-even point in units and in sales dollars. 2. If Sandy Bank sells 1,500 canoes, compute its margin of safety in units and as a percentage of sales. (Use the new sales price of $500.) 3. Calculate the number of canoes that Sandy Bank must sell at $500 each to generate $110,000 profit.
Sandy Bank, Incorporated, makes one model of wooden canoe. And, the information for it follows: Number of canoes produced and sold Total costs Variable costs Fixed costs Total costs Cost per unit Variable cost per unit Fixed cost per unit Total cost per unit 450 650 800 $ 120,000 $374,400 $ 494,400 $ 67,500 $ 374,400 $ 441,900 $ 97,500 $374,400 $ 471,900 $ 150.00 832.00 $ 150.00 576.00 $ 982.00 $ 726.00 $ 618.00 $ 150.00 468.00 Sandy Bank sells its canoes for $475 each. Required: 1. Suppose that Sandy Bank raises its selling price to $600 per canoe. Calculate its new break-even point in units and in sales dollars. 2. If Sandy Bank sells 900 canoes, compute its margin of safety in dollars and as a percentage of sales. (Use the new sales price of $600) 3. Calculate the number of canoes that Sandy Bank must sell at $600 each to generate $110,000 profit.
Sandy Bank, Inc., makes one model of wooden canoe. And, the information for it follows: Number of canoes produced and sold 400 600 750 Total costs Variable costs $ 67,500 $ 101,250 $ 126,563 Fixed costs $ 150,000 $ 150,000 $ 150,000 Total costs $ 217,500 $ 251,250 $ 276,563 Cost per unit Variable cost per unit $ 168.75 $ 168.75 $ 168.75 Fixed cost per unit 375.00 250.00 200.00 Total cost per unit $ 543.75 $ 418.75 $ 368.75 Sandy Bank sells its canoes for $550 each. Required: 1. Suppose that Sandy Bank raises its selling price to $675 per canoe. Calculate its new break-even point in units and in sales dollars. 2. If Sandy Bank sells 650 canoes, compute its margin of safety in dollars and as a percentage of sales. (Use the new sales price of $675.) 3. Calculate the number of canoes that Sandy Bank must sell at $675 each to generate $100,000 profit.
Riverside Incorporated makes one model of wooden canoe. Partial information for it follows: Number of Canoes Produced and Sold Total costs Variable costs Fixed costs Total costs: Cost per unit Variable cost per unit. Fixed cost per unit Total cost per unit Unit contribution margin Contribution margin ratio 400 Scenario 1 Raises Sales Price to $760 per Canoe $ 52,000 180,000 $ 232,000 $ 130.00 450.00 $580.00 600 $ 78,000 180,000 $ 258,000 Contribution Margin Income Statement $130.00 300.00 $ 430.00 Riverside sells its canoes for $660 each. Next year Riverside expects to sell 1,000 canoes. Required: Complete the Riverside's contribution margin income statement for each independent scenarlo. Assuming each scenario is 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 ente 12.34 %) and all other answers to the nearest dollar amount. Scenario 2 Increase Sales Price and Variable Cost per Unit by 10…
Sandy Bank, Incorporated, makes one model of wooden canoe. And, the information for it follows: Number of canoes produced and sold Total costs Variable costs Fixed costs Total costs Cost per unit Variable cost per unit Fixed cost per unit Total cost per unit Sandy Bank sells its canoes for $375 each. 450 Required 1 Required 2 $ 69,750 $ 468,000 $ 537,750 Required 3 $ 155.00 1,040.00 $ 1,195.00 650 $ 100,750 $ 468,000 $ 568,750 $ 155.00 720.00 $ 875.00 Complete this question by entering your answers in the tabs below. 800 Required: 1. Suppose that Sandy Bank raises its selling price to $500 per canoe. Calculate its new break-even point in units and in sales 2. If Sandy Bank sells 1,500 canoes, compute its margin of safety in dollars and as a percentage of sales. (Use the new sales pr $500) 3. Calculate the number of canoes that Sandy Bank must sell at $500 each to generate $110,000 profit. $ 124,000 $ 468,000 $ 592,000 $ 155.00 585.00 $ 740.00 Suppose that Sandy Bank raises its selling…
Riverside Inc. makes one model of wooden canoe. Partial information for it follows: 600 Number of Canoes Produced and Sold 400 Total costs Fixed costs Total costs Variable costs $ 50,000 $ 75,000 90,000 $140,000 90,000 $165,000 Cost per unit Variable cost per unit Fixed cost per unit Total cost per unit $ 125.00 225.00 $ 125.00 150.00 $ 350.00 $ 275.00 750 $ 93,750 90,000 $183,750 $ 125.00 120.00 $ 245.00 Riverside sells its canoes for $430 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. (Round your unit contribution margin and contribution margin ratio to 2 decimal places (i.e. .1234 should be entered as 12.34%) and all other answers to the nearest dollar amount.) Unit Contribution Margin Scenario 1 Raises Sales Price to $530 per Canoe Scenario 2 Increase Sales Price and Variable Cost per Unit by 10 Percent…
Riverside Incorporated makes one model of wooden canoe. Partial information for it follows: Number of Canoes Produced and Sold Total costs Variable costs Fixed costs Total costs: Cost per unit Variable cost per unit Fixed cost per unit. Total cost per unit Unit contribution margin Contribution margin ratio i Contribution margin Net operating income 550 Scenario 1 Raises Sales Price to $560 per Canoe $ 110,000 99,000 $ 209,000 $ 200.00 180.00 $ 380.00 750 $ 150,000 99,000 $ 249,000 Riverside sells its canoes for $460 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. Contribution Margin Income Statement $ 200.00 132.00 $ 332.00…
Sandy Bank, Incorporated, makes one model of wooden canoe. And, the information for it follows: Number of canoes produced and sold Total costs Variable costs Fixed costs Total costs Cost per unit Variable cost per unit Fixed cost per unit Total cost per unit Required 1 Required 2 Required 3 $ 52,000 $ 180,000 $ 232,000 400 New Break-Even Units Break-Even Sales Revenue $ 130.00 450.00 $ 580.00 Complete this question by entering your answers in the tabs below. Canoes 600 $ 130.00 240.00 $ 370.00
What is the conversion cost to manufacture insulated travel cups if the costs are: direct materials, $17,000; direct labor, $33,000; and manufacturing overhead, $70,000? A. $16,000 B. $50,000 C. $103,000 D. $120000
Riverside Inc. makes one model of wooden canoe. Partial information for it follows: Number of Canoes Produced and Sold 455 605 755 Total costs Variable costs $ 65,065 149,700 $214,765 ? Fixed costs Total costs 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 $505 each. Calculate the contribution margin per canoe and the contribution margin rati 4. Next year Riverside expects to sell 805 canoes. Complete the contribution margin income statement for the company. Complete this question by entering your answers in the tabs below. Required 1 Required 3 Required 4 Complete the table. (Round your cost per unit answers to 2 decimal places.) Number of Canoes Produced and Sold 455 605 755 Total Costs Variable Costs 2$ 65,065 Fixed Costs 149,700 Total Costs $ 214,765 $ $ Cost per Unit Variable Cost per Unit Fixed Cost per Unit Total Cost per Unit $ 0.00 $ 0.00 $ 0.00 Complete this…
Swifty's Manufacturing Company can make 100 units of a necessary component part with the following costs: Direct Materials Direct Labor Variable Overhead Fixed Overhead $117000 22000 49000 30000 If Swifty's Manufacturing Company purchases the component externally, $20000 of the fixed costs can be avoided. What is the maximum amount Swifty is willing to pay to purchase the 100 units? $218000 O $188000 $198000 $208000

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