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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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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