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 850 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 $67,000 profit this year. Calculate the number of canoes that must be sold to achieve thistarget. Number of Canoes Produced and Sold460630790Total costsVariable Costs$68,080Fixed Costs151,800219,880 $$$0Total CostsCost per UnitVariable Cost per UnitFixed Cost per Unit$$$0.00Total Cost per Unit0.000.00

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Answered: Sandy Bank, Inc., makes one model of…

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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If the unit sales price is $22 and variable costs are $14, how many units have to be söld to earn a profit of $3,600 if fixed costs equal $17,000? Multiple Choice 450 units 2,125 units 17,450 units 2,575 units
Profitability Analysis Cost Revenue Quantity 10,000 Fixed cost $100,000.00 Unit cost $12.00 Unit revenue $20.00 Total Revenue Net Profit Profit or Loss Total Cost $220,000.00 Outsourcing Decision Loss Produce In-House Outsource Quantity 12.000 Fixed cost 250,000.00 Unit cost $20.00 Fixed cost Unit cost $35.00 Technology Choice Decision Option A Option B Quantity Total In-House Production Cost 190,000.00 $200,000.00 Total Outsourced Cost 120,000.00 -$20,000.00 Cost difference (In-House - Outsourced $70,000.00 Cost difference (Option A - Option B) Economical Decision Outsource Economical Decision 11,000 Fixed cost $200,000.00 Unit cost $18.60 Fixed cost $100,000.00 Unit cost $21.00 Total Cost Option A $404,600.00 Total Cost Option B $331,000.00 $73,600.00 Option B
10. Royal Company provides the following information about its single product. Targeted operating income $55,260Selling price per unit $6.20Variable cost per unit $4.40Total fixed cost $83,880 What is the contribution margin per unit?⦁ $0.29⦁ $10.60⦁ $1.80⦁ $4.40
Without resorting computations what's the total contribution margin at break even point? sales $608,000. Per unit $40 variable $425600 per unit 28 contibution margin 182400 fixed expenses 156000 net operation 26400.
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Consider the following production and cost data for two products, L and C: Product L Product C Contribution margin per unit Machine minutes needed per unit $120 10 minutes $112 8 minutes A total of 60,000 machine minutes are available each period and there is unlimited demand for each product. What is the largest possible total contribution margin that can be realized each period? Multiple Choice $840,000 $780,000 $720,000
ed - t 0 ances Benoit Company produces three products-A, B, and C. Data concerning the three products follow (per unit): Product B $ 58.00 Selling price Variable expenses: Direct materials Other variable expenses Total variable expenses Contribution margin Contribution margin ratio A $88.00 26.40 26.40 52.80 $ 35.20 40% 12.00 34.40 46.40 $ 11.60 201 Contribution margin per pound of the constraining resource Required 1 C $ 80.00 12.00 44.00 56.00 $ 24.00 The company estimates it can sell 800 units of each product per month. The same raw material is used in each product. The material costs $3 per pound with a maximum of 5,400 pounds available each month. Required: 1. Calculate the contribution margin per pound of the constraining resource for each product. 2. Which orders would you advise the company to accept first, those for A, B, or C? Which orders second? Third? 3. What is the maximum contribution margin the company can earn per month if it makes optimal use of its 5,400 pounds of…
Cost pool $58,200 $88,500 Total cost in cost pool O $7,200 pool 1 pool 2 pool 3 Compute allocated capacity costs for product Alpha. $18,000 $7,500 $63,000 $45,000 not enough information need to know the total number of cost driver units Number of cost driver units product Alpha 20 20 30 -- product Beta 30 5 12
• Price per unit: $10 . Variable cost per unit: $7 . Fixed costs: $1,500 Given these data, compute the BREAKEVEN number of UNITS. O 150 units 88 units O 500 units 612 units 214 units
4) Assume sales and demand are 1,000 units, how much will the company make on the sale of the next two units if demand expands to 1,002 units. Discuss which amounts on the income statement will change if the company makes and sells two more units. Please discuss your calculations and reference to Figure 1.
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Contribution Margin I/S: Recast Exercise Sold (Unit) 10,000 Sales Variable expenses Contribution margin Fixed expenses Net Income 100,000 60,000 40,000 30,000 10,000 Per unit $10 $6 $4 (3) (5 7,500 Per unit $10 $6 $4 (6) (7) (8) (9) 12,000 11. Per unit ratios $10 12 $6 (13) $4

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