Question

Riverside Inc. makes one model of wooden canoe. Partial information for it follows: Number of Canoes Produced and Sold 480 630 780 Total costs Variable costs Fixed costs 69,600 ? 149,800 $219,400 Total costs 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 480 630 780 Total Costs Variable Costs Fixed Costs S 69,600 149,800 $219,400 Total Costs Cost per Unit Variable Cost per Unit Fixed Cost per Unit Total Cost per Unit

Answer 1

Answer:-1)-

Number of Canoes Produced & Sold	480	630	780
Total costs
Variable costs $	69600	630 canoes*$145 per unit=91350	780 canoes*$145 per unit=113100
Fixed costs $	149800	630 canoes*$237.78 per unit=149800	780 canoes*$237.78 per unit=185468
Total costs	219400	241150	298568
Cost per unit
Variable Cost per unit	145	145	145
Fixed Cost per unit	312.08	237.78	192.05
Total Cost per unit	457.08	382.78	337.05

3)-

Unit contribution margin = Selling price per unit-Contribution margin per unit

= $512 per unit-$145 per unit =$367 per unit

Contribution margin ratio = (Contribution margin per unit/ Selling price per unit)*100

= ($367 per unit/$512 per unit)*100

= 72%

4)-

RIVERSIDE INC.
CONTRIBUTION MARGIN INCOME STATEMENT
FOR THE NEXT YEAR
PARTICULARS		AMOUNT
Sales value	830 canoes*$512 per unit	424960
Less:- Variable cost	830 canoes*$145 per unit	120350
Contribution Margin		304610
Less:- Fixed cost		149800
Net operating Income		154810