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 400 600 750 $ 50,000 $ 90,000 $ 75,000 $ 90,000 $ 93,750 $ 90,000 Fixed costs Total costs $140,000 $165,000 $183,750 Cost per unit Variable cost per unit Fixed cost per unit $ 125.00 $ 125.00 $ 125.00 225.00 150.00 120.00 Total cost per unit $ 350.00 $ 275.00 $ 245.00 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 670 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 $100,000 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 400 600 750 $ 50,000 $ 90,000 $ 75,000 $ 90,000 $ 93,750 $ 90,000 Fixed costs Total costs $140,000 $165,000 $183,750 Cost per unit Variable cost per unit Fixed cost per unit $ 125.00 $ 125.00 $ 125.00 225.00 150.00 120.00 Total cost per unit $ 350.00 $ 275.00 $ 245.00 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 670 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 $100,000 profit.
Chapter5: Process Costing
Section: Chapter Questions
Problem 8MC: What is the conversion cost to manufacture insulated travel cups if the costs are: direct materials,...
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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
400
600
750
$ 50,000
$ 90,000
$ 75,000
$ 90,000
$ 93,750
$ 90,000
Variable costs
Fixed costs
Total costs
$140,000
$165,000
$183,750
Cost per unit
Variable cost per unit
Fixed cost per unit
$ 125.00
120.00
$ 125.00
$ 125.00
225.00
150.00
Total cost per unit
$ 350.00
$ 275.00
$ 245.00
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 670 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 $100,000 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
Canoes
Break-Even Sales Revenue
Required 1
Required 2 >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F358923dd-976b-4983-a367-bafd3b4b55c1%2F634d697d-377d-4874-85c5-9256e1d927d9%2Fekn8q6v8_processed.png&w=3840&q=75)
Transcribed Image Text:Sandy Bank, Inc., makes one model of wooden canoe. and, the information for it follows:
Number of canoes produced and sold
Total costs
400
600
750
$ 50,000
$ 90,000
$ 75,000
$ 90,000
$ 93,750
$ 90,000
Variable costs
Fixed costs
Total costs
$140,000
$165,000
$183,750
Cost per unit
Variable cost per unit
Fixed cost per unit
$ 125.00
120.00
$ 125.00
$ 125.00
225.00
150.00
Total cost per unit
$ 350.00
$ 275.00
$ 245.00
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 670 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 $100,000 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
Canoes
Break-Even Sales Revenue
Required 1
Required 2 >
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