Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. riverside inc. makes one model of wooden canoe. pa

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

90.2K

Verified Solution

Question

Accounting

image

Riverside Inc. makes one model of wooden canoe. Partial information for it follows Number of Canoes Produced and Sold Total costs 500 700 Variable costs Fixed costs $ 90,000 $ 126,000 $153,000 119,000 119,000 Total costs $209,000 $ 245,000 $ 272,000 Cost per unit Variable cost per unit Fixed cost per unit 180.00 $ 180.00 $ 180.00 -238.00 170.00 140.00 418.00 $ 350.00 $ 320.00 Total cost per unit Riverside sells its canoes for $500 each. Next year Riverside expects to sell 1,000 canoes Required Complete the Riverside's contribution margin income statement for each independent scenario. Assuming each scenario is a variation of Riverside's 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.) Scenario 1 Raises Sales Price to $600 per Canoe Scenario 2 Increase Sales Price and Variable Cost per Unit by 10 Percent Scenario 3 Decrease Fixed Cost by 20 Percent Unit Contribution Margin Contribution Margin Ratio Contribution Margin Income Statement ales Revenue riable Costs 180,000 Contribution Margin ixed Costs 119,000 Net Operating Income

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students