90.2K

Verified Solution

Link Copied!

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	$	69,525		?		?
Fixed costs		149,600		?		?
Total costs	$	219,125		?		?
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	515	665	815
Total Costs
Variable Costs	$69,525
Fixed Costs	149,600
Total Costs	$219,125
Cost per Unit
Variable Cost per Unit
Fixed Cost per Unit
Total Cost per Unit

3. Suppose Riverside sells its canoes for $507 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 865 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

Answer & Explanation Solved by verified expert

See Answer