Sandy Bank, Incorporated, makes one model of wooden canoe. And, the information for it follows:Number of canoes produced and soldTotal costsVariable costsFixed costsTotal costsCost per unitVariable cost per unitFixed cost per unitTotal cost per unit450650800$ 120,000$374,400$ 494,400$ 67,500$ 374,400$ 441,900$ 97,500$374,400$ 471,900$ 150.00832.00$ 150.00576.00$ 982.00$ 726.00$ 618.00$ 150.00468.00Sandy Bank sells its canoes for $475 each.Required:1. Suppose that Sandy Bank raises its selling price to $600 per canoe. Calculate its new break-even point in units and insales dollars.2. If Sandy Bank sells 900 canoes, compute its margin of safety in dollars and as a percentage of sales. (Use the new salesprice of $600)3. Calculate the number of canoes that Sandy Bank must sell at $600 each to generate $110,000 profit.

In simple terms, the contribution margin measures the profitability of each unit or sale and…

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 Sandy Bank sells its canoes for $475 each. Required: 650 $ 97,500 $374,400 $ 471,900 450 $ 67,500 $ 374,400 $ 441,900 $ 150.00 832.00 $ 982.00 $ 150.00 576.00 $726.00 800 $ 120,000 $374,400 $494,400 $ 150.00 468.00 $ 618.00 1. Suppose that Sandy Bank raises its selling price to $600 per canoe. Calculate its new break-even point in units and in sales dollars. 2. If Sandy Bank sells 900 canoes, compute its margin of safety in dollars and as a percentage of sales. (Use the new sales price of $600) 3. Calculate the number of canoes that Sandy Bank must sell at $600 each to generate $110,000 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 Sandy Bank sells its canoes for $475 each. Required: 650 $ 97,500 $374,400 $ 471,900 450 $ 67,500 $ 374,400 $ 441,900 $ 150.00 832.00 $ 982.00 $ 150.00 576.00 $726.00 800 $ 120,000 $374,400 $494,400 $ 150.00 468.00 $ 618.00 1. Suppose that Sandy Bank raises its selling price to $600 per canoe. Calculate its new break-even point in units and in sales dollars. 2. If Sandy Bank sells 900 canoes, compute its margin of safety in dollars and as a percentage of sales. (Use the new sales price of $600) 3. Calculate the number of canoes that Sandy Bank must sell at $600 each to generate $110,000 profit.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 1PA: The following product Costs are available for Haworth Company on the production of chairs: direct...

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