ces Sandy Bank, Incorporated, makes one model of wooden canoe. Partial information is given below. Required: 1. Complete the following table. 2. Suppose Sandy Bank sells its canoes for $600 each. Calculate the contribution margin per canoe and the contribution margin ratio. 3. This year Sandy Bank expects to sell 830 canoes for $600 each. Prepare a contribution margin income statement for the company. 4. Calculate Sandy Bank's break-even point in units and in sales dollars. Sandy Bank sells its canoes for $600 each. 5. Suppose Sandy Bank wants to earn $84,000 profit this year. Calculate the number of canoes that must be sold to achieve this target. Sandy Bank sells its canoes for $600 each. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Number of Canoes Produced and Sold Total costs Complete the following table. Note: Round your "Cost per Unit" answers to 2 decimal places. Variable Costs Fixed Costs Total Costs Cost per Unit Variable Cost per Unit Fixed Cost per Unit Required 4 Total Cost per Unit $ $ $ 450 Required 5 < Required 1 65,250 145,350 210,600 $ 0.00 $ 570 0 $ 0.00 $ Required 2 > 730 0 0.00

ces Sandy Bank, Incorporated, makes one model of wooden canoe. Partial information is given below. Required: 1. Complete the following table. 2. Suppose Sandy Bank sells its canoes for $600 each. Calculate the contribution margin per canoe and the contribution margin ratio. 3. This year Sandy Bank expects to sell 830 canoes for $600 each. Prepare a contribution margin income statement for the company. 4. Calculate Sandy Bank's break-even point in units and in sales dollars. Sandy Bank sells its canoes for $600 each. 5. Suppose Sandy Bank wants to earn $84,000 profit this year. Calculate the number of canoes that must be sold to achieve this target. Sandy Bank sells its canoes for $600 each. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Number of Canoes Produced and Sold Total costs Complete the following table. Note: Round your "Cost per Unit" answers to 2 decimal places. Variable Costs Fixed Costs Total Costs Cost per Unit Variable Cost per Unit Fixed Cost per Unit Required 4 Total Cost per Unit $ $ $ 450 Required 5 < Required 1 65,250 145,350 210,600 $ 0.00 $ 570 0 $ 0.00 $ Required 2 > 730 0 0.00

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Pricing

Pricing is used as a term in finance and economics, pricing is the process of fixing a value for a product or a service. Pricing establishes a value for a product or service that the customer has to pay. A business can choose from different strategies while deciding to set prices.

Question

ces
Sandy Bank, Incorporated, makes one model of wooden canoe. Partial information is given below.
Required:
1. Complete the following table.
2. Suppose Sandy Bank sells its canoes for $600 each. Calculate the contribution margin per canoe and the contribution margin ratio.
3. This year Sandy Bank expects to sell 830 canoes for $600 each. Prepare a contribution margin income statement for the company.
4. Calculate Sandy Bank's break-even point in units and in sales dollars. Sandy Bank sells its canoes for $600 each.
5. Suppose Sandy Bank wants to earn $84,000 profit this year. Calculate the number of canoes that must be sold to achieve this
target. Sandy Bank sells its canoes for $600 each.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2 Required 3
Number of Canoes Produced and Sold
Total costs
Complete the following table.
Note: Round your "Cost per Unit" answers to 2 decimal places.
Variable Costs
Fixed Costs
Total Costs
Cost per Unit
Variable Cost per Unit
Fixed Cost per Unit
Required 4
Total Cost per Unit
$
$
$
450
Required 5
< Required 1
65,250
145,350
210,600 $
0.00 $
570
0 $
0.00 $
Required 2 >
730
0
0.00

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Step 1: Introduce to break even point

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Step 2: Working for missing amount for variable cost and fixed

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Step 3: Working for contribution margin per canoe and contribution margin ratio

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Step 4: Working for sales, variable cost at 830 caneos

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Step 5: Working for break even point

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Step 6: Working for target sales unit for $84,000 profit

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