Paddle Away, Inc., makes one model of wooden canoe. Partial information for it follows:

Required:

1. Complete the preceding table.
2. Identify three costs that would be classified as fixed costs and three as variable costs for Paddle Away.
3. Suppose Paddle Away sells its canoes for $500 each. Calculate the contribution margin per canoe and the contribution margin ratio.
4. Next year Paddle Away expects to sell 800 canoes. Prepare a contribution margin income statement for the company.

Transcribed Image Text:

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 450 600 750 $ 67,500 ? ? 150,000 ? ? $217,500 ? ? ??? 222 ???