Question
In: Accounting
Riverside Inc. makes one model of wooden canoe. Partial information for it follows: Number of Canoes...
Riverside Inc. makes one model of wooden canoe. Partial
information for it follows:
| Number of Canoes Produced and Sold | ||||||
| 455 | 605 | 755 | ||||
| Total costs | ||||||
| Variable costs | $ | 66,885 | ? | ? | ||
| Fixed costs | 149,800 | ? | ? | |||
| Total costs | $ | 216,685 | ? | ? | ||
| Cost per unit | ||||||
| Variable cost per unit | ? | ? | ? | |||
| Fixed cost per unit | ? | ? | ? | |||
| Total cost per unit | ? | ? | ? | |||
Required:
1. Complete the table. (Round your cost per unit
answers to 2 decimal places.)
| Number of Canoes Produced and Sold | 455 | 605 | 755 |
| Total Costs | |||
| Variable Costs | $66,885 | ||
| Fixed Costs | 149,800 | ||
| Total Costs | $216,685 | ||
| Cost per Unit | |||
| Variable Cost per Unit | |||
| Fixed Cost per Unit | |||
| Total Cost per Unit |
3. Suppose Riverside sells its canoes for $504
each. Calculate the contribution margin per canoe and the
contribution margin ratio. (Round your contribution margin
to the nearest whole dollar and your contribution margin ratio to
the nearest whole percent.)
| Unit Contribution Margin | ||
| Contribution Margin Ratio | % |
4. Next year Riverside expects to sell 805 canoes.
Complete the contribution margin income statement for the
company.
|
RIVERSIDE INC. Contribution Margin Income Statement For the Next Year |
||
|---|---|---|
| Contribution Margin | ||
| Net Operating Income |
Solutions
Expert Solution
| 1 | Number of Canoes Produced and Sold | 455 | 605 | 755 |
| Total Costs | ||||
| Variable Costs | 66,885.00 | 88935 | 110985 | |
| Fixed Costs | 149,800.00 | 149,800.00 | 149,800.00 | |
| Total Costs(Variable + Fixed ) | 216,685.00 | 238,735.00 | 260,785.00 | |
| Cost per Unit | ||||
| Variable Cost per Unit (Variable Cost/Number of Canoes) |
147 | 147 | 147 | |
| Fixed Cost per Unit (Fixed Cost/Number of Canoes) |
329.23 | 247.60 | 198.41 | |
| Total Cost per Unit | 476.23 | 394.60 | 345.41 | |
| Calculation of Variable Cost per unit = Variable cost/Number of Canoes = 66885/455=147 | ||||
| 3 | Calculate the contribution margin per canoe and Contribution margin ratio when sale price is 504 | |||
| Sale Price | 504 | |||
| Less - Variable Cost | 147 | |||
| Contribution per canoe | 357 | |||
| Contribution margin ratio(Contribution per unit/Sales per unit) | 70.83% | |||
| 4 | RIVERSIDE INC. Contribution Margin Income Statement For the Next Year | |||
| Price per Canoe | No of Canoes | Price * Canoe | ||
| Sale Price | 504 | 805 | 405720 | |
| Less - Variable Cost | 147 | 805 | 118335 | |
| Contribution | 357 | 805 | 287385 | |
| Contribution margin ratio(Contribution per unit/Sales per unit) | 70.83% | |||
| Less - Fixed Cost | 149,800 | |||
| Net Operating Income | 137,585 | |||
? |
||||
ekkarill92 answered 1 year agoRelated Solutions
Riverside Inc. makes one model of wooden canoe. Partial information for it follows: Number of Canoes...
Riverside Inc. makes one model of wooden canoe. Partial
information for it follows:
Number of Canoes Produced and Sold
505
655
805
Total costs
Variable costs
$
66,660
?
?
Fixed costs
148,400
?
?
Total costs
$
215,060
?
?
Cost per unit
Variable cost per unit
?
?
?
Fixed cost per unit
?
?
?
Total cost per unit
?
?
?
Required:
1. Complete the table. (Round your cost per unit
answers to 2 decimal places.) ...
Riverside Inc. makes one model of wooden canoe. Partial information for it follows: Number of Canoes...
Riverside Inc. makes one model of wooden canoe. Partial
information for it follows:
Number of Canoes Produced and Sold
515
665
815
Total costs
Variable costs
$
71,585
?
?
Fixed costs
148,400
?
?
Total costs
$
219,985
?
?
Cost per unit
Variable cost per unit
?
?
?
Fixed cost per unit
?
?
?
Total cost per unit
?
?
?
Required:
1. Complete the table.
3. Suppose Riverside sells its canoes for $510
each. Calculate...
Riverside Inc. makes one model of wooden canoe. Partial information for it follows: Number of Canoes...
Riverside Inc. makes one model of wooden canoe. Partial
information for it follows: Number of Canoes Produced and Sold 500
650 800 Total costs Variable costs $ 66,500 ? ? Fixed costs 148,500
? ? Total costs $ 215,000 ? ? Cost per unit Variable cost per unit
? ? ? Fixed cost per unit ? ? ? Total cost per unit ? ? ? Required:
1. Complete the table. (Round your cost per unit answers to 2
decimal places.)...
Riverside Inc. makes one model of wooden canoe. Partial information for it follows: Number of Canoes...
Riverside Inc. makes one model of wooden canoe. Partial
information for it follows:
Number of Canoes Produced and Sold
545
695
845
Total costs
Variable costs
$
77,935
?
?
Fixed costs
148,100
?
?
Total costs
$
226,035
?
?
Cost per unit
Variable cost per unit
?
?
?
Fixed cost per unit
?
?
?
Total cost per unit
?
?
?
Required:
1. Complete the table. (Round your cost per unit
answers to 2 decimal places.) ...
Riverside Inc. makes one model of wooden canoe. Partial information for it follows: Number of Canoes...
Riverside Inc. makes one model of wooden canoe. Partial
information for it follows:
Number of Canoes Produced and Sold
530
680
830
Total costs
Variable costs
$
71,550
?
?
Fixed costs
148,500
?
?
Total costs
$
220,050
?
?
Cost per unit
Variable cost per unit
?
?
?
Fixed cost per unit
?
?
?
Total cost per unit
?
?
?
Required:
1. Complete the table. (Round your cost per unit
answers to 2 decimal places.) ...
Sandy Bank, Inc., makes one model of wooden canoe. And, the information for it follows: Number...
Sandy Bank, Inc., makes one model of wooden canoe. And, the
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...
Sandy Bank, Inc., makes one model of wooden canoe. And, the information for it follows: Number...
Sandy Bank, Inc., makes one model of wooden canoe. And, the
information for it follows:
Number of canoes produced and
sold
500
700
850
Total costs
Variable costs
$
92,500
$
129,500
$
157,250
Fixed costs
$
178,500
$
178,500
$
178,500
Total costs
$
271,000
$
308,000
$
335,750
Cost per unit
Variable cost per unit
$
185.00
$
185.00
$
185.00
Fixed cost per unit
357.00
255.00
210.00
Total cost per unit
$
542.00
$
440.00...
Sandy Bank, Inc., makes one model of wooden canoe. and, the information for it follows: Number...
Sandy Bank, Inc., makes one model of wooden canoe. and, the
information for it follows:
Number of canoes produced and sold
400
600
750
Total costs
Variable costs
$
54,000
$
81,000
$
101,250
Fixed costs
$
60,000
$
60,000
$
60,000
Total costs
$
114,000
$
141,000
$
161,250
Cost per unit
Variable cost per unit
$
135.00
$
135.00
$
135.00
Fixed cost per unit
150.00
100.00
80.00
Total cost per unit
$
285.00
$
235.00
$
215.00...
Sandy Bank, Inc., makes one model of wooden canoe. And, the information for it follows: Number...
Sandy Bank, Inc., makes one model of wooden canoe. And, the
information for it follows:
Number of canoes produced and sold
550
750
900
Total costs
Variable costs
$
112,750
$
153,750
$
184,500
Fixed costs
$
148,500
$
148,500
$
148,500
Total costs
$
261,250
$
302,250
$
333,000
Cost per unit
Variable cost per unit
$
205.00
$
205.00
$
205.00
Fixed cost per unit
270.00
198.00
165.00
Total cost per unit
$
475.00
$
403.00...
Sandy Bank, Inc., makes one model of wooden canoe. And, the information for it follows: Number...
Sandy Bank, Inc., makes one model of wooden canoe. And, the
information for it follows:
Number of canoes produced and
sold
450
650
800
Total costs
Variable costs
$
63,000
$
91,000
$
112,000
Fixed costs
$
187,200
$
187,200
$
187,200
Total costs
$
250,200
$
278,200
$
299,200
Cost per unit
Variable cost per unit
$
140.00
$
140.00
$
140.00
Fixed cost per unit
416.00
288.00
234.00
Total cost per unit
$
556.00
$
428.00...
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