E5-15 Calculating Contribution Margin and Contribution Ratio, Preparing Contribution Margin Income Statement [LO 5-5]

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

Number of Canoes Produced and Sold

450

650

800

Total costs
Variable costs	$	72,000	$	104,000	$	128,000
Fixed costs		187,200		187,200		187,200
Total costs	$	259,200	$	291,200	$	315,200

Cost per Unit

Variable cost per unit	$	160.00	$	160.00	$	160.00
Fixed cost per unit		416.00		288.00		234.00
Total cost per unit	$	576.00	$	448.00	$	394.00

Riverside sells its canoes for $680 each. Next year Riverside expects to sell 1,000 canoes.

Required:

Prepare Riversides contribution margin income statement for each independent scenario. Assuming each scenario is a variation of Riversides original data. (Round your "Unit Contribution Margin/Ratio" to 2 decimal places, and all other answers to the nearest whole dollar amount.)

	Scenario 1 Raises sales price to $780 per Canoe	Scenario 2 Icreases sales price and Variable cost per Unit by 10%	Scenario 3 Decrease Fixed cost by 20%
Unit contribution margin	$
Contribution margin ratio	%	%	%

Contribution Margin Income Statement

Comple the table.

Option Menu: Cost of goods sold, Fixed cost, Gross margin, Interest expense, Net income after taxes, Sales revenue, Variable cost

Contribution margin
Net operation Income