Riverside Inc. makes one model of wooden canoe. Partial information for it follows: Riverside...
Question:
Riverside Inc. makes one model of wooden canoe. Partial information for it follows:
| Number of Canoes Produced and Sold | 450 | 650 | 900 |
| Total costs | |||
| Variable costs | 69,750 | 100,750 | 139,500 |
| Fixed costs | 234,000 | 234,000 | 234,000 |
| Total costs | 303,750 | 334,750 | 373,500 |
| Cost per unit | |||
| Variable cost per unit | 155.00 | 155.00 | 155.00 |
| Fixed cost per unit | 520.00 | 360.00 | 260.00 |
| Total cost per unit | 675.00 | 515.00 | 415.00 |
Riverside sells its canoes for $750 each. Next year Riverside expects to sell 1,000 canoes.
Required:
Prepare Riverside's contribution margin income statement for each independent scenario. Assuming each scenario is a variation of Riverside's original data. (Round your "Unit Contribution Margin/Ratio" to2 decimal places, and all other answers to the nearest whole dollar amount.)
Contribution margin income statement
The contribution margin income statement is an income statement where all the variable costs are deducted from the sales to give the contribution margin, from which the fixed costs are deducted to arrive at the net operating income.
Answer and Explanation: 1
Become a Study.com member to unlock this answer! Create your account
View this answer
The income statements will look like this:
Riverside Inc.
Contribution Margin Income Statement for the period ended
| 450 units | 650 units | 900... |
|---|
See full answer below.
Ask a question
Our experts can answer your tough homework and study questions.
Ask a question Ask a questionSearch Answers
Learn more about this topic:
Get access to this video and our entire Q&A library
Creating Contribution Margin Income Statements
from
Chapter 8 / Lesson 10
5K
Contribution margin income statements subtract fixed costs from total sales to give a picture of how much is available for spending. Learn how these statements are produced, their importance to budgeting, and what distinguishes them from regular income statements.
Related to this Question
- Riverside Inc. makes one model of a wooden canoe. Partial information for it follows: Riverside sells its canoes for $660 each. Next year Riverside expects to sell 1,000 canoes. Required: Prepare Ri
- Sandy Bank Inc. makes one model of wooden canoe. Partial information for it follows: Sandy Bank sells its canoes for $450 each. Required 1. Suppose that Sandy Bank raises its selling price to $600 p
- Sandy Bank Inc. makes one model of wooden canoe. Partial information for it follows: Required: 1) Complete the following table. 2) Suppose Sandy Bank sells its canoes for $520 each. Calculate the con
- Sandy Bank, Inc., makes one model of wooden canoe. Partial information for it follows: Sandy Bank, Inc., makes one model af wooden canoe. Partial information for it follows: Required: 1. Complete t
- Crane manufactures aluminum canoes. In planning for the coming year, CFO Alexis King is considering three different sales targets: 2,500 canoes, 3,000 canoes, and 3,500 canoes. Canoes sell for $800 each. The standard variable cost information for a canoe
- Biscayne Bay Kayaks manufactures and sells 2,000 kayaks each year. Manufacturing is done in batches of 25 hulls each. Each kayak sells for $6,995. The company uses a machine to form the hulls of the k
- The following information is available for Dunworth Canoes a company that builds inexpensive aluminum canoes In its second year the company needed to get rid of excess inventory the extra 2370 units p
- Low-water Sailmakers manufactures sails for sailboats The company has the capacity to produce 25,000 sails per year, and is currently producing and selling 20,000 sails per year. The following information relates to current production: Sale price per un
- Great Lakes Boat Company manufactures sailboat hulls at a cost of $4,200 per unit. The hulls are sold to boat yards for $5,000. The company is evaluating the desirability of adding masts, sails, and r
- Adarmes Adventures manufactures aluminum canoes. In planning for the coming year, CFO Alexis King is considering three different sales targets: 2,500 canoes, 3,000 canoes, and 3,500 canoes. Canoes sel
- 23. Brenda, Inc. makes wooden tables. Each table requires 28 pounds of lumber to produce. The sales forecast for March is 1,600 tables. Estimated beginning and desired ending inventories for March are
- Clear Sky Sailmakers manufactures sails for sailboats. The company has the capacity to produce 15,000 sails per year, but is currently producing and selling 10,000 sails per year. The following inform
- Kayak Inc. sells 2,500 kayaks per year at a price of $500 per unit. It sells in a highly competitive market and uses target pricing. The company has calculated its target full product cost at $820,000 per year. Fixed costs are $350,000 per year and cannot
- Brenda, Inc. makes wooden tables. Each table requires 28 pounds of lumber to produce. The sales forecast for March is 1,600 tables. Estimated beginning and desired ending inventories for March are the
- Assume the Midwest Furniture Company sells two kinds of picnic tables, pine, and redwood. At a 3:1 unit sales mix in which Midwest sells three pine tables for every redwood table, the following revenue and cost information is available. Pine Table Redwoo
- Great Lakes Boat Company manufactures sailboat hulls at a cost of $4,200 per unit. The hulls are sold to boat yards for $5,000. The company is evaluating the desirablilit
- Clear Sky Sailmakers manufactures sails for sailboats. The company has the capacity to produce 15,000 sails per year, but is currently producing and selling 10,000 sails per year. The following information relates to current production: Sale price per uni
- Clear Sky Sailmakers manufactures sails for sailboats. The company has the capacity to produce 15,000 sails per year but is currently producing and selling 10,000 sails per year. The following information relates to current production: Sale price per
- Clear Sky Sailmakers manufactures sails for sailboats. The company has the capacity to produce 15,000 sails per year, but is currently producing and selling 10,000 sails per year. The following information relates to current production: Sale price per un
- Sierra Lumber Company produces lumber. The company has two grades of lumber at the split-off point, A and B. Grade A sells for $4 per board foot and Grade B sells for $2 per board foot. This lumber is suitable for framing and most exterior work but not fo
- Sell or Process Further Jackson Lumber Company incurs a cost of $394 per hundred board feet in processing certain "rough-cut" lumber, which it sells for $558 per hundred board feet. An alternative is
- Sell or Process Further: Jackson Lumber Company incurs a cost of $398 per hundred board feet in processing certain "rough-cut" lumber, which it sells for $562 per hundred board feet. An alternative is
- ABC Lumber spent $1,000 cutting down a tree. The result was 40 unfinished logs that sell for $20 each and 100 bags of sawdust that sell for $1.00 each. If the unfinished logs are processed into finish
- Big Lake Boat Tours sold off one of their tour boats that were too small to meet the current needs of business. The boat was sold to Abe's Used Boats for $25,000. Big Lake book value of the boat was $15,000.The boat, which turned out to be a collector's i
- The Nick Lumber Company is in the process of deciding whether to sell or process further rough sawn lumber. the joint cost of producing the rough sawn lumber is $10,500. The following data is availabl
- Sierra Lumber Company produces lumber. The company has two grades of lumber at the split-off point, A and B. Grade A sells for USD 4 per board foot and Grade B sells for USD 2 per board foot. This lum
- A lumber mill bought a shipment of logs for $34,000. When cut, the logs produced 850,000 board feet of lumber in the following grades. Type 1 - 350,000 bd. ft. priced to sell at $.17 per bd. ft. Type 2 - 320,000 bd. ft. priced to sell at $.17 per bd. ft
- Heritage Watercraft makes reproductions of classic wooden boats. The bottleneck in the production process is fitting wooden planks to build up the curved sections of the hull. This process requires th
- Poplar company has budgeted production for next year as follows: Quarter First Second Third Fourth Units to be sold 53,400 80,200 92,000 ? At the beginning of the year, Poplar is expected to have 2,6
- Fishermen's Corp. is considering purchasing a boat. If the boat was purchased, it is expected to receive $20,000 at the end of the first year, $40,000 at the end of the second year, and $60,000 at the
- Briny Sail Makers manufactures sails for sailboats. The company has the capacity to produce 35,000 sails per year and is currently producing and selling 30,000 sails per year. The following information relates to current production: Sales price per unit $
- Waterway Factory provides a 2-year warranty with one of its products which was first sold in 2020. Waterway sold $1,022,800 of products subject to the warranty. Waterway expects $119,130 of warranty costs over the next 2 years. In that year, Waterway spen
- Coast to Coast Surfboards Inc. manufactures and sells two styles of surfboards, Atlantic Wave and Pacific Pounder. These surfboards are sold in two regions, East Coast and West Coast. Information abou
- Sell or Process Further Calgary Lumber Company incurs a cost of $382 per hundred board feet (hbf) in processing certain "rough-cut" lumber, which it sells for $554 per hbf. An alternative is to produ
- Sawmill bought a shipment of logs for $40,000. When cut, the logs produced 1 million board feet of lumber in the following grades: Type 1 - 400,000 bd. ft. priced to sell at $0.12 per bd. ft. Type 2 -
- Chuck Wagon Grills, Inc., makes a single product ? a handmade specialty barbecue grill that it sells for $300. Data for last year's operations follow: Required: 1. Assume that the company uses varia
- Riggs Company purchases sails and produces sailboats. It currently produces 1,200 sailboats per year, operating at normal capacity, which is about 80% of full capacity. Riggs purchases sails at $250 each, but the company is considering using the excess ca
- Shawnee Motors Inc. assembles and sells snowmobile engines. The company began operations on August I and operated at 100% of capacity during the first month. The following data summarize the results f
- Chug Wagon Grills, Inc., makes a single product-a handmade specialty barbecue grill that it sells for $220. Data for last year's operations follow: 1. Assume that the company uses absorption costing.
- Chuck Wagon Grills, Inc., makes a single product-a handmade especially barbecue grill that it sells for $215. Data for last year's operations follow: Units in beginning inventory 0 Units produced 10,
- Feather Friends, Inc, distributes a high-quality wooden birdhouse that sells for $40 per unit. Variable expenses are $20.00 per unit, and fixed expenses total $180,000 per year. Required: 1.What is
- Creek, Inc., a foreign corporation, sells vacuum tubes in several countries, including the United States. in fact, currently 25% of Creek s sales income is sourced in the United States (through branches in New York and Chicago). Creek is considering openi
- The following information is available for Skipper Pools, a manufacturer of above-ground swimming pool kits: 2014 2015 Total Units produced 12,320 9,080 21,400 Units sold 10,700 10,700 21,400
- Feather Friends, Inc., distributes a high-quality wooden birdhouse that sells for $40 per unit. Variable expenses are $20.00 per unit, and fixed expenses total $200,000 per year. 1. What's the product
- Ponderosa, Inc., produces wiring harness assemblies used in the production of semi-trailer trucks. The wiring harness assemblies are sold to various truck manufacturers around the world. Projected sales in units for the coming five months are given below.
- Keller Company makes two models of battery-operated boats, the Sandy Beach and the Rocky River. Basic production information follows:
- Mantle, Inc. produces two types of wooden mallets, Ash and Oak, in its Miami factory. Data relating to the mallets are given below: |Product | Ash | Oak |Unit selling price | $30 |$28 Variable manufacturing costs |$11 |$12 |Variable selling costs |$1
- Centric Sail Makers manufacture sails for sailboats. The company has the capacity to produce 35,000 sails per year, and is currently producing and selling 25,000 sails per year. The following informat
- The following information is available for Skipper Pools, a manufacturer of above-ground swimming pool kits: 2014 2015 Total Units produced 11,370 9,030 20,400 Units sold 10,200 10,200 20,400 Selling
- Snow Cap Springs produces and sells water filtration systems for homeowners. Information regarding its three models is shown below. | |Basic |Basic Plus |Premium |Total |Units sold |912|368|320|1,600
- Feather Friends, Inc, distributes a high-Quality wooden bird house that sells for $120 per unit. Variable expenses are $60.00 per unit, and fixed expenses total $180,000 per year. Required: 1. What
- Marine, Inc., manufactures a product that is available in both a flexible and a rigid model. The company has made the rigid model for years; the flexible model was introduced several years ago to tap a new segment of the market. Since the introduction of
- Chuck Wagon Grills, Inc., makes a single product-a handmade specialty barbecue grill that it sells for $210. Data for last year's operations follow: Units in beginning inventory 0 Units produced 20,
- Chuck Wagon Grills, Inc., makes a single product-a handmade specialty barbecue grill that is sells for $210. Data for last year's operations follow: Units in beginning inventory 0 Units produced 20,0
- Aces Inc., a manufacturer of tennis rackets, began operations this year. The company produced 5,700 rackets and sold 4,600. Each racket was sold at a price of $87. Fixed overhead costs are $72,390 and
- Aces Inc., a manufacturer of tennis rackets, began operations this year. The company produced 6,000 rackets and sold 4,900. Each racket was sold, at a price of $90. Fixed overhead costs are $78,000, a
- Riggs Company purchases sails and produces sailboats. It currently produces 1,270 sailboats per year, operating at normal capacity, which is about 80% of full capacity. Riggs purchases sail at $272 ea
- Dado, Inc. is preparing its budget for the second quarter. The following sales data have been forecasted: April May June July August Unit Sales 640 720 780 620 660 Additional information follows: Inv
- Larson, Inc., manufactures backpacks. Last year, it sold 85,000 of its basic model for $25 per unit. The company estimates that this volume represents a 20% share of the current market. The market is expected to increase by 15% next year. Marketing specia
- Riggs Company purchases sails and produces sailboats. It currently produces 1,300 sailboats per year, operating at normal capacity, which is about 80% of full capacity Riggs purchases sails at $258 ea
- Chuck Wagon Grills, Inc., makes a single product-a handmade specialty barbecue grill that it sells for $200. Data for last year's operations follow: Units in beginning inventory 0 Units produced 10,500 Units sold 8,500 Units in ending inventory 2,000 Vari
- Chuck Wagon Grills, Inc., makes a single product - a handmade specialty barbecue grill that it sells for $210. Data for last year's operations follow: Units in beginning inventory 0 Units produced 10,
- Chuck Wagon Grills, Inc., makes a single product - a handmade specialty barbecue grill that it sells for $200. Data for last year's operations follow: Units in beginning inventory 0 Units produced 10,
- Grant Wood Company manufactures desks. Most of the company's desks are standard models and are sold on the basis of catalog prices. At Dec 31, 2008 the following finished desks appear in the company
- Matlock Gauge Company makes wind and current gauges for pleasure boats. The gauges are sold throughout the Southeast to boat dealers, and the average order size is $50. The company sells to all registered dealers without a credit analysis. Terms are "net
- PWC Systems Inc. makes personal watercraft for sale through specialty sporting goods stores. The company has a standard model but also makes custom-designed models. Management has designed an ABC syst
- Waterway Corp. sells a snowboard, Elide that is popular with snowboard enthusiasts. Below is information relating to Waterway Corp.'s purchases of EZ slide snowboards during September During the same
- Sunset Boards is a small company that manufactures and sells surfboards in Malibu. Tad Marks, the founder of the company, is in charge of the design and sale of the surfboards, but his background is i
- Gilday Furniture Inc. produces custom furniture. Wood chips are an inevitable by-product of the cutting process, and are considered scrap. Gilday is unable to use this scrap; however, the company has an agreement to sell the scrap at market prices to a lo
- Bogeeta, Inc., manufactures two products - bicycles and skateboards. For each bicycle sold, the company receives $95. For each skateboard sold, it receives $65. Each bicycle requires 10 minutes of Gordy's time, 15 minutes of Kelly's time, 8 minutes of Dav
- Sunset Boards. Sunset Boards is a small company that manufactures and sells surfboards in Malibu. Tad Marks, the founder of the company, is in charge of the design and sale of the surfboards, but his
- Sheridan Company purchases sails and produces sailboats. It currently produces 1,230 sailboats per year, operating at normal capacity, which is about 80% of full capacity. Sheridan purchases sails at $258 each, but the company is considering using the exc
- The Carolina Company prepares lumber for companies who manufacture furniture. The main product is finished lumber with a byproduct of wood shavings. The byproduct is sold to plywood manufactures. For
- Well Water Inc. wants to produce and sell new flavored water. In order to penetrate the market, the product will have to sell at $2.00 per 12 oz. bottle. The following data has been collected: Annua
- Frigid Motors Inc. assembles and sells snowmobile engines. The company began operations on July 1, 2016, and operated at 100% of capacity during the first month. The following data summarize the resu
- Emerson Co. makes surfboards. Each surfboard requires 9 pounds of fiberglass to produce. The sales forecast for March is 1,700 surfboards. Estimated beginning and desired ending inventories for March
- PWC Systems, Inc. makes jet skis and other personal watercraft for sale through specialty sporting goods stores. The company has a standard jet ski model but also makes custom-designed models. Managem
- Ponderosa, Inc., produces wiring harness assemblies used in the production of semi-trailer trucks. The wiring harness assemblies are sold to various truck manufacturers around the world. Projected sal
- ABC Skis Inc. manufactures and distributes three types of water skis: beginner, intermediate, and advanced. Production is highly automated for the beginner model, whereas the intermediate and advanced
- Cardon's Boat Yard, inc repairs store and cleans boats for customers. It is completing the accounting process for the year just ended November 30, 2912, The transactions during 2012 have been journalized and posted. The following data with respect to adju
- The Addy Corporation purchased a new oven for its commercial kitchen on August 1st for $14,000 and expects to use it for 8 years at which time it can be sold for an estimated $2,000. What net book val
- 1. Preston, Inc., manufactures wooden shelving units for collecting and sorting mail. The company expects to produce 350 units in July and 400 units in August. Each unit requires 13 feet of wood at a
- Ponderosa, Inc., produces wiring harness assemblies for use in the production of semi-trailer trucks. The wiring harness assemblies are sold to various truck manufacturers around the world. Projected
- The Glass Menagerie makes small, pressed-resin ducks and ducklings. They are sold as sets containing one duck and five ducklings. The following information is available about the company?s selling pri
- John Boy Lumber cuts logs to create 2 immediate joint products, lumber, and sawdust. Unfinished lumber can be sold as-is for $140 or processed further at a sales price of $270. Sawdust can be sold as-is for $40 or processed further for a sales price of $5
- Kenzi Kayaking, a manufacturer of kayaks, began operations this year. During this first year, the company produced 1,075 kayaks and sold 825. at a price of $1,075 each. At this first year-end, the com
- Kenzi Kayaking, a manufacturer of kayaks, began operations this year. During this first year, the company produced 1,050 kayaks and sold 800. at a price of $1,050 each. At this first year-end, the com
- Riggs Company purchases sails and produces sailboats. It currently produces 1,290 sailboats per year, operating at normal capacity, which is about 80% of full capacity. Riggs purchases sails at $273 e
- Portland Lumber Company incurs a cost of $465 per hundred board feet (hbf) in processing certain "rough-cut" lumber, which it sells for $630 per hbf. An alternative is to produce a "finished cut" at a
- Chuck Wagon Grills, Inc., makes a single product-a handmade specialty barbecue grill that it sells for $215. Data for last year's operations follow: Units in beginning inventory 0 Units produced 9,900 Units sold 9,200 Units in ending inventory 700 Variabl
- Chuck Wagon Grills, Inc., makes a single product-a handmade specialty barbecue grill that it sells for $300. Data for last year's operations follow: Units in beginning inventory 0 Units produced 10,000 Units sold 8,700 Units in ending inventory 1,300 Vari
- Forda Lumber Company owns a 7,000-acre tract of timber purchased in 2007 for $1,300 per acre. At the time of purchase, the land was estimated to have a value of $300 per acre without the timber. Forda
- Clovis Supply sells two models of saddles to retail outfitters basic and custom. Basic saddles sell for $970 each and custom saddles sell for $1,520. The variable cost of a basic saddle is $580 and that of a custom saddle is $760. Annual fixed costs at Cl
Explore our homework questions and answers library
Browse
by subject