Solution-Calculate the contribution margin per canoe

Calculate the contribution margin per canoe

Reference no: EM131565902

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.

Reference no: EM131565902

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Calculate the contribution margin per canoe

Reference no: EM131565902

Reference no: EM131565902

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