Answered step by step
Verified Expert Solution
Question
1 Approved Answer
7 Sandy Bank, Inc., makes one model of wooden canoe. and, the information for it follows: 135 Number of canoes produced and sold 458 658
7 Sandy Bank, Inc., makes one model of wooden canoe. and, the information for it follows: 135 Number of canoes produced and sold 458 658 889 polnts Total costs Variable costs '1. 67,588 $ 97,566 $126,296 Fixed costs $374,488 $374,488 $374,488 Total costs $441,966 $471, 988 $494,488 El Cost per unit EEDDk Variable cost per' unit 33 150.88 $ 158.88 5 158.88 Fixed cost per' unit 532.88 576.66 466.66 @ Total cost per' unit '1. 962.66 $ 726.66 5 613.98 Him ' . Sandy Bank sells its canoes for $475 each. A\" Required: 1. Suppose that Sandy Bank raises its selling price to $600 per canoe. Calculate its new breakeven point in units and in sales dollars. 5 1 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 Prim $600,} 3. Calculate the number of canoes that Sandy Bank must sell at $600 each to generate $110,000 pl'Dflt. TI References Complete this question by entering your answers in the all); below. Required 1 Required 2 Required 3 Suppose that Sandy Bank raises its selling price to $600 per canoe. Calculate its new breakeven point in units and in sales dollars. (Do not round intermediate calculations. Round your nal answers to nearest whole number.) New BreakeEven Units BreakeEven Sales Revenue Required 2 )
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started