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Required: 1. Suppose that Sandy Bank raises its selling price to $600 per canoe. Calculate its new break-even point in units and in sales dollars. 2. If Sandy Bank sells 1,520 canoes, compute its margin of safety in dollars and as a percentage of sales. (Use the new sales price of $600) 3. Calculate the number of canoes that Sandy Bank must sell at $600 each to generate $120,000 profit. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Suppose that Sandy Bank raises its selling price to $600 per canoe. Calculate its new break-even point in units and in sales dollars. Note: Do not round intermediate calculations. Round your final answers to nearest whole number. New Break-Even Units Break-Even Sales Revenue Canoes

Required: 1. Suppose that Sandy Bank raises its selling price to $600 per canoe. Calculate its new break-even point in units and in sales dollars. 2. If Sandy Bank sells 1,520 canoes, compute its margin of safety in dollars and as a percentage of sales. (Use the new sales price of $600) 3. Calculate the number of canoes that Sandy Bank must sell at $600 each to generate $120,000 profit. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Suppose that Sandy Bank raises its selling price to $600 per canoe. Calculate its new break-even point in units and in sales dollars. Note: Do not round intermediate calculations. Round your final answers to nearest whole number. New Break-Even Units Break-Even Sales Revenue Canoes

FINANCIAL ACCOUNTING
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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Sandy Bank, Incorporated, makes one model of wooden canoe. And, the information for it follows: Number of canoes produced and sold Total costs Variable costs Fixed costs 500 $ 82,500 $ 178,500 $ 261,000 New Break-Even Units Break-Even Sales Revenue Total costs Cost per unit Variable cost per unit Fixed cost per unit Total cost per unit. Sandy Bank sells its canoes for $475 each. Required: 1. Suppose that Sandy Bank raises its selling price to $600 per canoe. Calculate its new break-even point in units and in sales dollars. 2. If Sandy Bank sells 1,520 canoes, compute its margin of safety in dollars and as a percentage of sales. (Use the new sales price of $600) 3. Calculate the number of canoes that Sandy Bank must sell at $600 each to generate $120,000 profit. Complete this question by entering your answers in the tabs below. $165.00. 357.00 $ 522.00 700 $ 115,500 $ 178,500 $ 294,000 Canoes 850 $ 140,250 $ 178,500 $ 318,750 $ 165.00 255.00 $ 420.00 Required 1. Required 2. Required 3 Suppose that Sandy Bank raises its selling price to $600 per canoe. Calculate its new break-even point in units and in sales dollars. Note: Do not round intermediate calculations. Round your final answers to nearest whole number. $ 165.00 210.00 $ 375.00
Transcribed Image Text:Sandy Bank, Incorporated, makes one model of wooden canoe. And, the information for it follows: Number of canoes produced and sold Total costs Variable costs Fixed costs 500 $ 82,500 $ 178,500 $ 261,000 New Break-Even Units Break-Even Sales Revenue Total costs Cost per unit Variable cost per unit Fixed cost per unit Total cost per unit. Sandy Bank sells its canoes for $475 each. Required: 1. Suppose that Sandy Bank raises its selling price to $600 per canoe. Calculate its new break-even point in units and in sales dollars. 2. If Sandy Bank sells 1,520 canoes, compute its margin of safety in dollars and as a percentage of sales. (Use the new sales price of $600) 3. Calculate the number of canoes that Sandy Bank must sell at $600 each to generate $120,000 profit. Complete this question by entering your answers in the tabs below. $165.00. 357.00 $ 522.00 700 $ 115,500 $ 178,500 $ 294,000 Canoes 850 $ 140,250 $ 178,500 $ 318,750 $ 165.00 255.00 $ 420.00 Required 1. Required 2. Required 3 Suppose that Sandy Bank raises its selling price to $600 per canoe. Calculate its new break-even point in units and in sales dollars. Note: Do not round intermediate calculations. Round your final answers to nearest whole number. $ 165.00 210.00 $ 375.00
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