E6-5 (Algo) Calculating Contribution Margin and Contribution Margin Ratio; Identifying Break-Even Point, Target Profit [LO 6-1, 6-2] 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 $510 each. Calculate the contribution margin per canoe and the contribution margin ratio. 3. This year Sandy Bank expects to sell 790 canoes for $510 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 $510 each. 5. Suppose Sandy Bank wants to earn $74,000 profit this year. Calculate the number of canoes that must be sold to achieve this target. Sandy Bank sells its canoes for $510 each. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Complete the following table. Note: Round your "Cost per Unit" answers to 2 decimal places. Number of Canoes Produced and Sold 460 550 750 Total costs Variable Costs Fixed Costs Total Costs $ 67,160 150,880 $ 218,040 $ 0 $ 0 Cost per Unit Variable Cost per Unit Fixed Cost per Unit $ 0.00 $ 0.00 $ 0.00
E6-5 (Algo) Calculating Contribution Margin and Contribution Margin Ratio; Identifying Break-Even Point, Target Profit [LO 6-1, 6-2] 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 $510 each. Calculate the contribution margin per canoe and the contribution margin ratio. 3. This year Sandy Bank expects to sell 790 canoes for $510 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 $510 each. 5. Suppose Sandy Bank wants to earn $74,000 profit this year. Calculate the number of canoes that must be sold to achieve this target. Sandy Bank sells its canoes for $510 each. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Complete the following table. Note: Round your "Cost per Unit" answers to 2 decimal places. Number of Canoes Produced and Sold 460 550 750 Total costs Variable Costs Fixed Costs Total Costs $ 67,160 150,880 $ 218,040 $ 0 $ 0 Cost per Unit Variable Cost per Unit Fixed Cost per Unit $ 0.00 $ 0.00 $ 0.00
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![E6-5 (Algo) Calculating Contribution Margin and Contribution Margin Ratio; Identifying Break-Even
Point, Target Profit [LO 6-1, 6-2]
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 $510 each. Calculate the contribution margin per canoe and the contribution margin ratio.
3. This year Sandy Bank expects to sell 790 canoes for $510 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 $510 each.
5. Suppose Sandy Bank wants to earn $74,000 profit this year. Calculate the number of canoes that must be sold to achieve this
target. Sandy Bank sells its canoes for $510 each.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2 Required 3 Required 4
Required 5
Complete the following table.
Note: Round your "Cost per Unit" answers to 2 decimal places.
Number of Canoes Produced and Sold
460
550
750
Total costs
Variable Costs
Fixed Costs
Total Costs
$
67,160
150,880
$
218,040
$
0
$
0
Cost per Unit
Variable Cost per Unit
Fixed Cost per Unit
$
0.00
$
0.00
$
0.00](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fcd818504-a262-48c2-8691-4c4f03fb909f%2Fc4f67ad0-11d1-4f09-9549-3c3c105c82a1%2F2nuehpj_processed.jpeg&w=3840&q=75)
Transcribed Image Text:E6-5 (Algo) Calculating Contribution Margin and Contribution Margin Ratio; Identifying Break-Even
Point, Target Profit [LO 6-1, 6-2]
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 $510 each. Calculate the contribution margin per canoe and the contribution margin ratio.
3. This year Sandy Bank expects to sell 790 canoes for $510 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 $510 each.
5. Suppose Sandy Bank wants to earn $74,000 profit this year. Calculate the number of canoes that must be sold to achieve this
target. Sandy Bank sells its canoes for $510 each.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2 Required 3 Required 4
Required 5
Complete the following table.
Note: Round your "Cost per Unit" answers to 2 decimal places.
Number of Canoes Produced and Sold
460
550
750
Total costs
Variable Costs
Fixed Costs
Total Costs
$
67,160
150,880
$
218,040
$
0
$
0
Cost per Unit
Variable Cost per Unit
Fixed Cost per Unit
$
0.00
$
0.00
$
0.00
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