Riverside Inc. makes one model of wooden canoe. Partial information for it follo
ID: 2534291 • Letter: R
Question
Riverside Inc. makes one model of wooden canoe. Partial information for it follows: Number of Canoes Produced and Sold 500 650 800 Total costs Variable costs $ 66,500 ? ? Fixed costs 148,500 ? ? Total costs $ 215,000 ? ? Cost per unit Variable cost per unit ? ? ? Fixed cost per unit ? ? ? Total cost per unit ? ? ? Required: 1. Complete the table. (Round your cost per unit answers to 2 decimal places.)
3. Suppose Riverside sells its canoes for $503 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.)
4. Next year Riverside expects to sell 850 canoes. Complete the contribution margin income statement for the company. With discription
Number of Canoes Produced and Sold 500 650 800 Total Costs Variable Costs $66,500 Fixed Costs 148,500 Total Costs $215,000 $0 $0 Cost per Unit Variable Cost per Unit Fixed Cost per Unit Total Cost per Unit $0.00 $0.00 $0.00Explanation / Answer
Answer:-2)-
3)-
Unit contribution margin = Selling price per unit-Variable cost per unit
Unit contribution margin per canoes =$503-$133 per unit=$370 per unit
Contribution margin ratio = Contribution margin per unit/Selling price per unit*100
=$370 per unit/$503 per unit*100
=73.56%
4)-
Number of Canoes Produced & Sold 500 650 800 Total costs Variable costs $ 66500 650 canoes*$133 per unit=86450 800 canoes*$133 per unit=106400 Fixed costs $ 148500 650 canoes*$228.46 per unit=148500 800 canoes*$185.63 per unit=148500 Total costs 215000 234950 254900 Cost per unit Variable Cost per unit 133 133 133 Fixed Cost per unit 297 228.46 185.63 Total Cost per unit 430 361.46 318.63Related Questions
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