Riverside Inc. makes one model of wooden canoe. Partial information for it follo

Question

Riverside Inc. makes one model of wooden canoe. Partial information for it follows Number of Canoes Produced and Sold 815 515 72.615 $222.515 665 Total costs Variable costs Fixed costs Total costs Cost per unit Variable cost per unit Fixed cost per unit Total cost per unt Required: Complete the table. (Round your cost per unit answers to 2 decimal places) of Canoes Produced and 665 815 Total Costs $ 72.615 149.900 S 222 515 Variable Costs Fixed Costs Total Costs Cost per Unit Variable Cost per Unit Fixed Cost per Unit Total Cost per Unit 3. Suppose Riverside sells its canoes for $512 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. Contribution Margin Ratio 4. Next year Riverside expects to sell 865 canoes Complete the contribution margin income statement for the company Margin Income Statement For the Next Year Contribution Margin Net Operating Income

Explanation / Answer

1 Production & Sales Particulars 515 665 815 Particulars 515 PU Total Costs: Total Costs: Variable Costs 72615 93765 114915 Units *141 Variable Costs 72615 141.00 (72615/515) Fixed Costs 149900 149900 149900 Fixed Costs 149900 Fixed Cost Total Costs: 222515 243665 264815 Total Costs: 222515 Cost per Unit: Variable Cost PU 141.00 141.00 141.00 Fixed Cost PU 291.07 225.41 183.93 Total Cost PU 432.07 366.41 324.93 2 Sales Price 512.00 Less: Variable Costs 141.00 Contribution Margin 371.00 Contribution Margin Ratio 72.46% (371/512) 3 RIVERSIDE INC. Contribution Margin Income Statement For the Next Year Sales 442880 (865*512) Less: Variable Costs 121965 (865*141) Contribution Margin 320915 Less: Fixed Costs 149900 Net Operating Income 171015

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