Question

32 0.33 Doints Number of Canoes Produced and sold 540 620 780 Total costs Variable costs $ 67,500 2 ? Fixed costs 150,000 7 2 Total costa $217,500 2 7 Cost per unit Variable cost per unit 2 2 7. Fixed cost per unit 2 7 2 Total cost per unit 2 2 2 eBook Required: 1. Complete the table. Hint 3. Suppose Riverside sells its canoes for $500 each. Calculate the contribution margin per canoe and the contribution margin ratio. 4. Next year Riverside expects to sell 700 canoes. Complete the contribution margin income statement for the company. Print Complete this question by entering your answers in the tabs below. References Required 1 Required 3 Required 4 Complete the table. (Round your cost per unit answers to 2 decimal places.) 540 620 780 Number of Canoes Produced and Sold Total Costs Variable Costs Fixed Costs $ 67.500 150,000 217,500 $ Total Costs $ 0 $ 0 Cost per Unit Variable Cost per Unit Fixed Cost per Unit Total Cost per Unit $ 0.00 $ 0.00 $ 0.00

Answer 1

540 620 780 Canoes 1 No. of Canoes produced and sold Total Cost Incurred Variable Cost Fixed Cost Total Cost Cost Per Canoe Variable cost per Canoe Fixed cost per Canoe Total Cost Per Canoe 67500 77500 97500$ 150000 150000 150000 $ 217500 227500 247500$ 125.00 125.00 125.00 $ 277.78 241.94 192.31 $ 402.78 366.94 317.31 $ =(Fixed Cost/No of Canoes) =(Variable Cost/No of Canoes) Fixed Cost per Unit Variable Cost per Unit Variable cost per unit remains constant fixed cost remains constant 3 Unit Contribution Margin Sales Per Canoe - a Variable cost per canoe - b Contribution Margin (c = a - b) 500.00 125.00 375.00 Per Canoe Contribution Margin ratio - (c/a)* 100 75 %. 4 RIVERSIDE INC Contribution Margin Income Statement For the Next Year Sales (700 * $500 350000 $ less : Variable cost (700 * $125) 87500 $ Contribution Margin 262500$ Less : Fixed Cost 150000 $ Net Operating Income 112500$

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