E6-5 (Algo) Calculating Contribution Margin and Contribution Margin Ratio; Identifying Break-Even Point, Target Profit [LO 6-1, 6-2]

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 $580 each. Calculate the contribution margin per canoe and the contribution margin ratio.

3. This year Sandy Bank expects to sell 750 canoes. Prepare a contribution margin income statement for the company.

4. Calculate Sandy Banks break-even point in units and in sales dollars.

5. Suppose Sandy Bank wants to earn $74,000 profit this year. Calculate the number of canoes that must be sold to achieve this target.