Question

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 | $ | 107,250 | $ | 146,250 | $ | 175,500 | |||

Fixed costs | 247,500 | 247,500 | 247,500 | ||||||

Total costs | $ | 354,750 | $ | 393,750 | $ | 423,000 | |||

Cost per unit | |||||||||

Variable cost per unit | $ | 195.00 | $ | 195.00 | $ | 195.00 | |||

Fixed cost per unit | 450.00 | 330.00 | 275.00 | ||||||

Total cost per unit | $ | 645.00 | $ | 525.00 | $ | 470.00 | |||

Riverside sells its canoes for $750 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.)**

Answer #1

RIVERSIDE INC. |
|||||||

Number of Canoes Produced and Sold | 550 | 750 | 900 | 1000 | |||

Sales | $412,500 | $562,500 | $675,000 | $750,000 | |||

Less: Variable costs | $107,250 | $146,250 | $175,500 | $195,000 | |||

Contribution margin | $305,250 | $416,250 | $499,500 | $555,000 | |||

Contribution margin per unit | 555.00 | 555.00 | 555.00 | 555.00 | |||

Contribution Margin Ratio | 74.00% | 74.00% | 74.00% | 74.00% | |||

(Contribution margin / Sales) | |||||||

Riverside Inc. makes one model of wooden canoe. Partial
information for it follows:
Number of Canoes Produced and Sold
520
670
820
Total costs
Variable costs
$
71,760
?
?
Fixed costs
148,000
?
?
Total costs
$
219,760
?
?
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 $515
each. Calculate...

Riverside Inc. makes one model of wooden canoe. Partial
information for it follows:
Number of Canoes Produced and Sold
495
645
795
Total costs
Variable costs
$
72,270
?
?
Fixed costs
149,200
?
?
Total costs
$
221,470
?
?
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 $516
each. Calculate...

Riverside Inc. makes one model of wooden canoe. Partial
information for it follows:
Number of Canoes Produced and Sold
470
620
770
Total costs
Variable costs
$
66,740
?
?
Fixed costs
149,400
?
?
Total costs
$
216,140
?
?
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 Produced and Sold
550
700
850
Total costs
Variable costs
$
73,150
?
?
Fixed costs
149,700
?
?
Total costs
$
222,850
?
?
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 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 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.) ...

Sandy Bank, Inc., makes one model of wooden canoe. Partial
information is given below.
Required:
1. Complete the following table.
2. Suppose Sandy Bank sells its canoes for $580
each. Calculate the contribution margin per canoe and the
contribution margin ratio.
3. This year Sandy Bank expects to sell 760
canoes. Prepare a contribution margin income statement for the
company.
4. Calculate Sandy Bank’s break-even point in
units and in sales dollars.
5. Suppose Sandy Bank wants to earn $74,000...

Sandy Bank, Inc., makes one model of wooden canoe. Partial
information is given below.
Required:
1. Complete the following table.
2. Suppose Sandy Bank sells its canoes for $510
each. Calculate the contribution margin per canoe and the
contribution margin ratio.
3. This year Sandy Bank expects to sell 830
canoes. Prepare a contribution margin income statement for the
company.
4. Calculate Sandy Bank’s break-even point in
units and in sales dollars.
5. Suppose Sandy Bank wants to earn $68,000...

Sandy Bank, Inc., makes one model of wooden canoe. Partial
information is given below.
Required:
1. Complete the following table.
2. Suppose Sandy Bank sells its canoes for $550
each. Calculate the contribution margin per canoe and the
contribution margin ratio.
3. This year Sandy Bank expects to sell 830
canoes. Prepare a contribution margin income statement for the
company.
4. Calculate Sandy Bank’s break-even point in
units and in sales dollars.
5. Suppose Sandy Bank wants to earn $81,000...

Sandy Bank, Inc., makes one model of wooden canoe. Partial
information is given below.
Required:
1. Complete the following table.
2. Suppose Sandy Bank sells its canoes for $550
each. Calculate the contribution margin per canoe and the
contribution margin ratio.
3. This year Sandy Bank expects to sell 810
canoes. Prepare a contribution margin income statement for the
company.
4. Calculate Sandy Bank’s break-even point in
units and in sales dollars.
5. Suppose Sandy Bank wants to earn $81,000...

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