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girlydiy17
20.06.2020 •
Business
Riverside Inc. makes one model of wooden canoe. Partial information for it follows:
Number of Canoes Produced and Sold 540 620 780
Total costs
Variable costs $ 67,500 $ 77,500 $ 97,500
Fixed costs 150,000 150,000 150,000
Total costs $ 217,500 $ 227,500 $ 247,500
Cost per unit Variable cost per unit $ 125.00 $ 125.00 $ 125.00
Fixed cost per unit 277.78 241.94 192.31
Total cost per unit $ 402.78 $ 366.94 $ 317.31
Riverside sells its canoes for $500 each. Next year Riverside expects to sell 700 canoes.
Required:
Prepare Riverside’s contribution margin income statement for each independent scenario. Assuming each scenario is a variation of Riverside’s original data.
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