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Question posted in text below the picture in case the screenshot is hard to read.

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

Required:
1. Complete the table. (Round your cost per unit answers to 2 decimal places.)   



3. Suppose Riverside sells its canoes for $519 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 885 canoes. Complete the contribution margin income statement for the company.

Thank you!!!

Number of Canoes Produced and Sold 535 685 835 Total costs Variable costs $ 73,830 ? ? Fixed costs 149,500 ? ? Total costs $ 223,330 ? ? Cost per unit Variable cost per unit ? ? ? Fixed cost per unit ? ? ? Total cost per unit ? ? ? Riverside Inc. makes one model of wooden canoe. Partial information for it follows Number of Canoes Produced and Sold 535 S 73.830 5223.330 885 35 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. Complete the table. (Round your cost per unit answers to 2 decimal places.) Number of Canoes Produced and Sold 535 685 835 Total Costs 73.830 149.500 S 223.330 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 $519 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.) Unit Contribution Margin Contribution Margin Ratio 4. Next year Riverside expects to sell 885 canoes. Complete the contribution margin income statement for the company. RIVERSIDE INC. Contribution Margin Income Statement For the Next Year Contribution Margin Net Operating Income

Explanation / Answer

1.

Number of Canoes Produced and Sold

Variable cost per unit remains constant for any level of output produced and sold.

Total fixed cost remains constant for any level of output produced and sold.

Per unit = Total ÷ Number of units

3. Sales per canoe = $519

Variable cost per canoe = $138

Contribution margin per canoe = Sales per canoe - Variable cost per canoe = 519-138 = $381

Contribution margin ratio = Contribution margin per canoe ÷ Sales per canoe = 381÷519 = 0.7341 = 73.41% = 73%

4.

Contribution margin Income Statement

For 885 canoes

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