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 $590 each. Calculate the contribution margin per canoe and the contribution margin ratio. 3. This year Sandy Bank expects to sell 770 canoes for $590 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 $590 each. 5. Suppose Sandy Bank wants to earn $81,000 profit this year. Calculate the number of canoes that must be sold to achieve this target. Sandy Bank sells its canoes for $590 each. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Complete the following table. Note: Round your "Cost per Unit" answers to 2 decimal places. Number of Canoes Produced and Sold Total costs Variable Costs Fixed Costs Total Costs Cost per Unit Variable Cost per Unit Fixed Cost per Unit Required 3 Total Cost per Unit Required 4 $ $ $ Required 5 440 66,880 141,680 208,560 $ 0.00 $ 560 0 $ 0.00 $ 770 0 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 $590 each. Calculate the contribution margin per canoe and the contribution margin ratio. 3. This year Sandy Bank expects to sell 770 canoes for $590 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 $590 each. 5. Suppose Sandy Bank wants to earn $81,000 profit this year. Calculate the number of canoes that must be sold to achieve this target. Sandy Bank sells its canoes for $590 each. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Complete the following table. Note: Round your "Cost per Unit" answers to 2 decimal places. Number of Canoes Produced and Sold Total costs Variable Costs Fixed Costs Total Costs Cost per Unit Variable Cost per Unit Fixed Cost per Unit Required 3 Total Cost per Unit Required 4 $ $ $ Required 5 440 66,880 141,680 208,560 $ 0.00 $ 560 0 $ 0.00 $ 770 0 0.00
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![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 $590 each. Calculate the contribution margin per canoe and the contribution margin ratio.
3. This year Sandy Bank expects to sell 770 canoes for $590 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 $590 each.
5. Suppose Sandy Bank wants to earn $81,000 profit this year. Calculate the number of canoes that must be sold to achieve this
target. Sandy Bank sells its canoes for $590 each.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Complete the following table.
Note: Round your "Cost per Unit" answers to 2 decimal places.
Number of Canoes Produced and Sold
Total costs
Variable Costs
Fixed Costs
Total Costs
Cost per Unit
Variable Cost per Unit
Fixed Cost per Unit
Required 3
Total Cost per Unit
Required 4
$
$
$
440
Required 5
Required 1
66,880
141,680
208,560 $
0.00 $
560
0 $
0.00 $
Required 2 >
770
0
0.00](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fce5b7a4e-70fd-44ef-baa6-c399771aba82%2Fe7745b38-319e-480f-9d56-e733cd471768%2Fr4ktjnh_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 $590 each. Calculate the contribution margin per canoe and the contribution margin ratio.
3. This year Sandy Bank expects to sell 770 canoes for $590 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 $590 each.
5. Suppose Sandy Bank wants to earn $81,000 profit this year. Calculate the number of canoes that must be sold to achieve this
target. Sandy Bank sells its canoes for $590 each.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Complete the following table.
Note: Round your "Cost per Unit" answers to 2 decimal places.
Number of Canoes Produced and Sold
Total costs
Variable Costs
Fixed Costs
Total Costs
Cost per Unit
Variable Cost per Unit
Fixed Cost per Unit
Required 3
Total Cost per Unit
Required 4
$
$
$
440
Required 5
Required 1
66,880
141,680
208,560 $
0.00 $
560
0 $
0.00 $
Required 2 >
770
0
0.00
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