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 810 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 $70,000 profit this year. Calculate the number of canoes that must be sold to achieve this target.

Complete this question by entering your answers in the tabs below.

• Required 1
• Required 2
• Required 3
• Required 4
• Required 5

Complete the following table. (Round your "Cost per Unit" answers to 2 decimal places.)

Number of Canoes Produced and Sold	450	550	730
Total costs
Variable Costs	$63,900
Fixed Costs	150,300
Total Costs	$214,200	$0	$0
Cost per Unit
Variable Cost per Unit
Fixed Cost per Unit
Total Cost per Unit	$0.00	$0.00	$0.00