Riverside 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 that would be classified as variable costs for Riverside.
3. Suppose Riverside sells its canoes for $500 each. Calculate the contribution margin per canoe and the contribution margin ratio.
4. Next year Riverside expects to sell 700 canoes. Prepare a contribution margin income statement for the company.

Transcribed Image Text:

Number of Canoes Produced and Sold 540 620 780 Total costs Variable costs Fixed costs $ 67,500 150,000 $217,500 2 Total costs Cost per unit Variable cost per unit Fixed cost per unit Total cost per unit