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Sandy Bank, Inc, makes one model of wooden canoe. and, the information for it follows: Number of canoes produced and sold Total costs Variable costs Fixed costs 450 650 800 $ 69,750 $ 468,000 $ 537,750 $100,750 $468,000 $568,750 $124,000 $468,000 $592,000 Total costs Cost per unit Variable cost per unit Fixed cost per unit 24155.00 1,040.00 $1,195.00 $ 155.00 720.00 $ 155.00 585.00 Total cost per unit $ 875.00 $ 740.00 Sandy Bank sells its canoes for $375 each. Required: 1. Suppose that Sandy Bank raises its selling price to $500 per canoe. Calculate its new break-even point in units and in sales dollars. 2. If Sandy Bank sells 1,500 canoes, compute its margin of safety in dollars and as a percentage of sales. (Use the new sales price of $500.) 3. Calculate the number of canoes that Sandy Bank must sell at $500 each to generate $110,000 profit.

Sandy Bank, Inc, makes one model of wooden canoe. and, the information for it follows: Number of canoes produced and sold Total costs Variable costs Fixed costs 450 650 800 $ 69,750 $ 468,000 $ 537,750 $100,750 $468,000 $568,750 $124,000 $468,000 $592,000 Total costs Cost per unit Variable cost per unit Fixed cost per unit 24155.00 1,040.00 $1,195.00 $ 155.00 720.00 $ 155.00 585.00 Total cost per unit $ 875.00 $ 740.00 Sandy Bank sells its canoes for $375 each. Required: 1. Suppose that Sandy Bank raises its selling price to $500 per canoe. Calculate its new break-even point in units and in sales dollars. 2. If Sandy Bank sells 1,500 canoes, compute its margin of safety in dollars and as a percentage of sales. (Use the new sales price of $500.) 3. Calculate the number of canoes that Sandy Bank must sell at $500 each to generate $110,000 profit.

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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%252Fnewcon mework Saved Sandy Bank, Inc., makes one model of wooden canoe, and, the information for it follows: Number of canoes produced and sold Total costs Variable costs Fixed costs 450 650 800 $ 69,750 $ 468,000 $ 537,750 $100,750 $468,000 $124,000 $468,000 $592,000 Total costs $568,750 Cost per unit Variable cost per unit Fixed cost per unit $ 155.00 1,040.00 $ 155.00 $ 155.00 585.00 $ 740.00 720.00 Total cost per unit $1,195.00 $ 875.00 Sandy Bank sells its canoes for $375 each. Required: 1. Suppose that Sandy Bank raises its selling price to $500 per canoe. Calculate its new break-even point in units and in sales dollars. 2. If Sandy Bank sells 1,500 canoes, compute its margin of safety in dollars and as a percentage of sales. (Use the new sales price of $500.) 3. Calculate the number of canoes that Sandy Bank must sell at $500 each to generate $110,000 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 $500 per canoe. Calculate its new break-even point in units and in sales dollars. (Do not round intermediate calculations. Round your final answers to nearest whole number.) New Break Even Units Break-Even Sales Revenue Canoes < Prev 4 of 10 Next > e to search EGO 2 3.
Transcribed Image Text:%252Fnewcon mework Saved Sandy Bank, Inc., makes one model of wooden canoe, and, the information for it follows: Number of canoes produced and sold Total costs Variable costs Fixed costs 450 650 800 $ 69,750 $ 468,000 $ 537,750 $100,750 $468,000 $124,000 $468,000 $592,000 Total costs $568,750 Cost per unit Variable cost per unit Fixed cost per unit $ 155.00 1,040.00 $ 155.00 $ 155.00 585.00 $ 740.00 720.00 Total cost per unit $1,195.00 $ 875.00 Sandy Bank sells its canoes for $375 each. Required: 1. Suppose that Sandy Bank raises its selling price to $500 per canoe. Calculate its new break-even point in units and in sales dollars. 2. If Sandy Bank sells 1,500 canoes, compute its margin of safety in dollars and as a percentage of sales. (Use the new sales price of $500.) 3. Calculate the number of canoes that Sandy Bank must sell at $500 each to generate $110,000 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 $500 per canoe. Calculate its new break-even point in units and in sales dollars. (Do not round intermediate calculations. Round your final answers to nearest whole number.) New Break Even Units Break-Even Sales Revenue Canoes < Prev 4 of 10 Next > e to search EGO 2 3.
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