esE6-5 (Algo) Calculating Contribution Margin and Contribution Margin Ratio; Identifying Break-EvenPoint, 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 $600 each. Calculate the contribution margin per canoe and the contribution margin ratio.3. This year Sandy Bank expects to sell 810 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 $82,000 profit this year. Calculate the number of canoes that must be sold to achieve thistarget. Sandy Bank sells its canoes for $600 each.Complete this question by entering your answers in the tabs below.Required 1 Required 2Required 3 Required 4Complete the following table.Note: Round your "Cost per Unit" answers to 2 decimal places.Number of Canoes Produced and SoldTotal costsVariable Conta67AUG74Required 5400EO COOP< Prev600tv2 of 4Htt‒‒‒740Next >aHelpO 14:08edokttnces4. Calculate Sandy Bank's break-even point in units and in sales dollars. Sandy Bank sells its canoes for $600 each.5. Suppose Sa Bank wants to earn $82,000 profit this year. Calculate the number of canoes that must be sold to achievtarget. Sandy Bank sells its canoes for $600 each.Complete this question by entering your answers in the tabs below.Required 1 Required 2 Required 3Number of Canoes Produced and SoldTotal costsComplete the following table.Note: Round your "Cost per Unit" answers to 2 decimal places.Variable CostsFixed CostsTotal CostsCost per UnitVariable Cost per UnitFixed Cost per UnitRequired 4Total Cost per Unit$$$400Required 5< Required 159,600128,400188,000$0.00 $< Prev6000$+0.00 $Required 2 >2 of 474000.00Next >10A C

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Answered: E6-5 (Algo) Calculating Contribution…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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REQUIRED Answer each of the following questions independently. As far as possible use the expanded contribution margin model to present your answers. Suppose an additional R300 000 is spent on advertising in order to increase the sales by 3 000 Calculate the number of pallets that need to be produced and sold to break even. Suppose the management team of Lomax Ltd is considering a R30 per pallet decrease in the selling price with the expectation that this would increase the sales volume by 10%. Is this a good idea? Motivate your answer with the relevant calculations. Determine the selling price per pallet that will enable Lomax Ltd to achieve an operating profit of R3 192 000. INFORMATION Lomax Ltd…
5. Nowitzki Corporation sells sets of encyclopedias. Nowitzki sold 4,000 sets last year at ₱25,000 a set. The variable cost per set was ₱17,500 and the fixed costs for Nowitzki were ₱10,000,000. If the Nowitzki’s sales increase by 20%, its net operating income should increase by about.. Show solution Group of answer choices 30.00% 13.33% 60.00% 06.67%
Desk company has a product that it currently sells in the market for $80 per unit. Does develop a new feature that if added to the 16 product will allow desk to receive a price of $95 per unit.
Dd.80.
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1. University Catering sells 50 pound bags of popcorn in the university dormitories for P10 abag. Fixed cost of this operation are P80,000 while variable costs of the popcorn are P.10per pound.a. What is the BEP in bags?b. Calculate the EBIT or loss on 12,000 bags and 25,000 bags.c. Calculate the EBIT or loss on 25,000 bags.
Cost-volume-profit and regression analysis. Relling Corporation manufactures a drink bottle, model CL24. During 2017, Relling produced 210,000 bottles at a total cost of $808,500. Kraff Corporation has offered to supply as many bottles as Relling wants at a cost of $3.75 per bottle. Relling anticipates needing 225,000 bottles each year for the next few years.
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…
Required information [The following information applies to the questions displayed below.] C. W. McCall sells a goldplated souvenir mug; McCall expects to sell 1,600 units for $45 each to earn a $25 contribution margin per unit. Janice McCall, president, expects the year's total market to be 32,000 units. For the year just completed, the local college won the national hockey championship, and as a result, the total actual market was 100,000 units. C. W. McCall sold 3,000 units and calculates sales variances using contribution margin. What is the firm's market share variance? Market share variance
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Q.1 ChemCo has developed a new product, and has consulted with its marketing department, who have determined that the market share will be 20,000 units, and have recommended that a selling price of $60.00 per unit would be app- ropriate. ChemCo has been able to keep the cost per unit at $50.00. The company has spent a total of $900,000 to design and develop this product. Required: Use the above information to compute as follows: 1. Compute the expected margin for ChemCo 2. Compute the expected turnover 3. Compute the ROI Explain why it is necessary to do the above computations, and show how management can use this information for managing operations

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