Question: E5-16 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
E5-16 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 | 500 | 700 | 850 | ||||||
| Total costs | |||||||||
| Variable costs | $ | 90,000 | $ | 126,000 | $ | 153,000 | |||
| Fixed costs | 119,000 | 119,000 | 119,000 | ||||||
| Total costs | $ | 209,000 | $ | 245,000 | $ | 272,000 | |||
| Cost per unit | |||||||||
| Variable cost per unit | $ | 180.00 | $ | 180.00 | $ | 180.00 | |||
| Fixed cost per unit | 238.00 | 170.00 | 140.00 | ||||||
| Total cost per unit | $ | 418.00 | $ | 350.00 | $ | 320.00 | |||
Riverside sells its canoes for $500 each. Next year Riverside expects to sell 1,000 canoes. Required: Complete the Riversides contribution margin income statement for each independent scenario. Assuming each scenario is a variation of Riversides original data. (Round your unit contribution margin and contribution margin ratio to two decimal places (i.e. .1234 should be entered as 12.34%) and all other answers to the nearest dollar amount.)
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