E5-19 (Algo) 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		550			750			900
Total costs
Variable costs	$	115,500		$	157,500		$	189,000
Fixed costs		198,000			198,000			198,000
Total costs	$	313,500		$	355,500		$	387,000
Cost per unit
Variable cost per unit	$	210.00		$	210.00		$	210.00
Fixed cost per unit		360.00			264.00			220.00
Total cost per unit	$	570.00		$	474.00		$	430.00

Riverside sells its canoes for $650 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 2 decimal places (i.e. .1234 should be entered as 12.34%) and all other answers to the nearest dollar amount.)

Scenario 1 Raises Sales Price to $750 Scenario 2 Increase Sales Price and Variable Cost per Unit by 10 Percent Scenario 3 Decrease Fixed Cost by 20 Percent per Canoe Unit Contribution Margin Contribution Margin Ratio % % % Contribution Margin Income Statement Contribution Margin Net Operating Income