Problem - Riverside Inc. makes one model of wooden canoe. Partial information for it follows:
|
|
Number of Canoes
|
Produced
|
Sold
|
|
|
540
|
690
|
840
|
|
Total costs
|
|
|
|
|
Variable costs
|
$76,680
|
?
|
?
|
|
Fixed costs
|
148,100
|
?
|
?
|
|
Total costs
|
$224,780
|
?
|
?
|
|
Cost per unit
|
|
|
|
|
Variable cost per unit
|
?
|
?
|
?
|
|
Fixed cost per unit
|
?
|
?
|
?
|
|
Total cost per unit
|
?
|
?
|
?
|
Required:
1. Complete the table.
|
Number of Canoes Produced and Sold
|
|
|
|
|
Total costs
|
|
|
|
|
Variable costs
|
$76,680
|
|
|
|
Fixed costs
|
148,100
|
|
|
|
Total costs
|
$224,780
|
|
|
|
Cost per unit
|
|
|
|
|
Variable cost per unit
|
|
|
|
|
Fixed cost per unit
|
|
|
|
|
Total cost per unit
|
|
|
|
2. Suppose Riverside sells its canoes for $517 each. Calculate the contribution margin per canoe and the contribution margin ratio.
3. Next year Riverside expects to sell 890 canoes. Complete the contribution margin income statement for the company.