Riverside Incorporated makes one model of wooden canoe. Partial information for it follows: Number of Canoes...
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Riverside Incorporated makes one model of wooden canoe. Partial information for it follows: Number of Canoes Produced and Sold Variable costs Total costs Fixed costs Total costs Cost per unit Variable cost per unit Fixed cost per unit Total cost per unit 550 750 $ 142,500 198,000 $ 340,500 $ 104,500 198,000 $ 302,500 $ 190.00 360.00 $ 190.00 264.00 $ 550.00 $ 454.00 900 $ 171,000 198,000 $ 369,000 $ 190.00 220.00 $ 410.00 Riverside sells its canoes for $630 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 1 Raises Sales Price to $730 per Canoe Scenario 2 Increase Sales Price and Variable Cost per Unit by 10 Percent Scenario 3 Decrease Fixed Cost by 20 Percent Unit contribution margin Contribution margin ratio % Contribution Margin Income Statement Contribution margin Net operating income % % Riverside Incorporated makes one model of wooden canoe. Partial information for it follows: Number of Canoes Produced and Sold Variable costs Total costs Fixed costs Total costs Cost per unit Variable cost per unit Fixed cost per unit Total cost per unit 550 750 $ 142,500 198,000 $ 340,500 $ 104,500 198,000 $ 302,500 $ 190.00 360.00 $ 190.00 264.00 $ 550.00 $ 454.00 900 $ 171,000 198,000 $ 369,000 $ 190.00 220.00 $ 410.00 Riverside sells its canoes for $630 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 1 Raises Sales Price to $730 per Canoe Scenario 2 Increase Sales Price and Variable Cost per Unit by 10 Percent Scenario 3 Decrease Fixed Cost by 20 Percent Unit contribution margin Contribution margin ratio % Contribution Margin Income Statement Contribution margin Net operating income % %
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Related Book For
Managerial Accounting
ISBN: 978-0078025518
2nd edition
Authors: Stacey Whitecotton, Robert Libby, Fred Phillips
Posted Date:
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