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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 Total costs Cost per unit Variable cost per unit Fixed cost per unit Total cost per unit 400 $ 50,000 $90,000 $ 140,000 $ 125.00 225.00 $ 350.00 600 $ 75,000 $ 90,000 $ 165,000 $ 125.00 150.00 $ 275.00 750 $ 93,750 $ 90,000 $ 183,750 $ 125.00 120.00 $ 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 dolla 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, 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 Total costs Cost per unit Variable cost per unit Fixed cost per unit Total cost per unit 400 $ 50,000 $90,000 $ 140,000 $ 125.00 225.00 $ 350.00 600 $ 75,000 $ 90,000 $ 165,000 $ 125.00 150.00 $ 275.00 750 $ 93,750 $ 90,000 $ 183,750 $ 125.00 120.00 $ 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 dolla 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.

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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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 Total costs Cost per unit Variable cost per unit Fixed cost per unit Total cost per unit Required 1 Required 2 Required 3 Margin of Safety in dollar sales Margin of Safety as Percentage of Sales Number of canoes produced and sold Total costs Complete this question by entering your answers the tabs below. Variable costs Fixed costs Total costs Cost per unit Variable cost per unit Fixed cost per unit Total cost per unit. 400 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 sells its canoes for $375 each. $ 50,000 $ 90,000 $ 140,000 $ 125.00 225.00 $ 350.00 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) Note: Do not round intermediate calculations. Round your answers to the nearest whole number. Required 1 Required 2 Required 3 Sandy Bank, Incorporated, makes one model of wooden canoe. And, the information for it follows: Canoes 600 400 $ 75,000 $ 90,000 $ 165,000 $50,000 $ 90,000 $ 140,000 $ 125.00 150.00 $ 275.00 % $ 125.00 225.00 $ 350.00 600 750 $ 75,000 $ 90,000 $ 165,000 Complete this question by entering your answers in the tabs below. $ 93,750 $ 90,000 $ 183,750 $ 125.00 150.00 $ 275.00 $ 125.00 120.00 $ 245.00 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. 750 $ 93,750 $90,000 $ 183,750 $125.00 120.00 $ 245.00 Calculate the number of canoes that Sandy Bank must sell at $500 each to generate $100,000 profit. Note: Do not round your intermediate calculations. Round your answer to the nearest whole number. Target Sales Units
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 Total costs Cost per unit Variable cost per unit Fixed cost per unit Total cost per unit Required 1 Required 2 Required 3 Margin of Safety in dollar sales Margin of Safety as Percentage of Sales Number of canoes produced and sold Total costs Complete this question by entering your answers the tabs below. Variable costs Fixed costs Total costs Cost per unit Variable cost per unit Fixed cost per unit Total cost per unit. 400 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 sells its canoes for $375 each. $ 50,000 $ 90,000 $ 140,000 $ 125.00 225.00 $ 350.00 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) Note: Do not round intermediate calculations. Round your answers to the nearest whole number. Required 1 Required 2 Required 3 Sandy Bank, Incorporated, makes one model of wooden canoe. And, the information for it follows: Canoes 600 400 $ 75,000 $ 90,000 $ 165,000 $50,000 $ 90,000 $ 140,000 $ 125.00 150.00 $ 275.00 % $ 125.00 225.00 $ 350.00 600 750 $ 75,000 $ 90,000 $ 165,000 Complete this question by entering your answers in the tabs below. $ 93,750 $ 90,000 $ 183,750 $ 125.00 150.00 $ 275.00 $ 125.00 120.00 $ 245.00 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. 750 $ 93,750 $90,000 $ 183,750 $125.00 120.00 $ 245.00 Calculate the number of canoes that Sandy Bank must sell at $500 each to generate $100,000 profit. Note: Do not round your intermediate calculations. Round your answer to the nearest whole number. Target Sales Units
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 Total costs Cost per unit Variable cost per unit Fixed cost per unit Total cost per unit 400 $ 50,000 $ 90,000 $ 140,000 $ 125.00 225.00 $ 350.00 600 Canoes $ 75,000 $ 90,000 $ 165,000 $ 125.00 150.00 $ 275.00 750 $ 93,750 $ 90,000 $ 183,750 $ 125.00 120.00 $ 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. Note: Do not round intermediate calculations. Round your final answers to nearest whole number. New Break-Even Units Break-Even Sales Revenue
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 Total costs Cost per unit Variable cost per unit Fixed cost per unit Total cost per unit 400 $ 50,000 $ 90,000 $ 140,000 $ 125.00 225.00 $ 350.00 600 Canoes $ 75,000 $ 90,000 $ 165,000 $ 125.00 150.00 $ 275.00 750 $ 93,750 $ 90,000 $ 183,750 $ 125.00 120.00 $ 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. Note: Do not round intermediate calculations. Round your final answers to nearest whole number. New Break-Even Units Break-Even Sales Revenue
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