Sandy Bank, Inc., 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 $510 each. Calculate the contribution margin per canoe and the contribution margin ratio. 3. This year Sandy Bank expects to sell 760 canoes. Prepare a contribution margin income statement for the company. 4. Calculate Sandy Bank's break-even point in units and in sales dollars. 5. Suppose Sandy Bank wants to earn $68,000 profit this year. Calculate the number of canoes that must be sold to achieve this target. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Complete the following table. (Round your "Cost per Unit" answers to 2 decimal places.) Number of Canoes Produced and Sold 420 630 790 Total costs Variable Costs 2$ 65,940 Fixed Costs 136,920 otal Costs 202,860 $ 24 Cost per Unit Variable Cost per Unit Fixed Cost per Unit otal Cost per Unit %24 0.00 $ 0.00 2$ 0.00

Sandy Bank, Inc., 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 $510 each. Calculate the contribution margin per canoe and the contribution margin ratio. 3. This year Sandy Bank expects to sell 760 canoes. Prepare a contribution margin income statement for the company. 4. Calculate Sandy Bank's break-even point in units and in sales dollars. 5. Suppose Sandy Bank wants to earn $68,000 profit this year. Calculate the number of canoes that must be sold to achieve this target. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Complete the following table. (Round your "Cost per Unit" answers to 2 decimal places.) Number of Canoes Produced and Sold 420 630 790 Total costs Variable Costs 2$ 65,940 Fixed Costs 136,920 otal Costs 202,860 $ 24 Cost per Unit Variable Cost per Unit Fixed Cost per Unit otal Cost per Unit %24 0.00 $ 0.00 2$ 0.00

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 2CE

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Sandy Bank, Inc., 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 $510 each. Calculate the contribution margin per canoe and the contribution margin ratio.
3. This year Sandy Bank expects to sell 760 canoes. Prepare a contribution margin income statement for the company.
Calculate Sandy Bank's break-even point in units and in sales dollars.
5. Šuppose Sandy Bank wants to earn $68,000 profit this year. Calculate the number of canoes that must be sold to achieve this
target.
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
Required 3
Required 4
Required 5
Complete the following table. (Round your "Cost per Unit" answers to 2 decimal places.)
Number of Canoes Produced and Sold
420
630
790
Total costs
Variable Costs
65,940
Fixed Costs
136,920
Total Costs
2$
202,860 $
0 $
Cost per Unit
Variable Cost per Unit
Fixed Cost per Unit
otal Cost per Unit
0.00 $
0.00 $
0.00
<Required 1
Required 2 >
%24
%24

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