Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

E6-5 (Algo) Calculating Contribution Margin and Contribution Margin Ratio; Identifying Break-Even Point, Target Profit [LO 6-1, 6-2] Sandy Bank, Incorporated, makes one model of wooden

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
E6-5 (Algo) Calculating Contribution Margin and Contribution Margin Ratio; Identifying Break-Even Point, Target Profit [LO 6-1, 6-2] Sandy Bank, Incorporated, 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 $540 each. Calculate the contribution margin per canoe and the contribution margin ratio. 3. This year Sandy Bank expects to sell 800 canoes for $540 each. Prepare a contribution margin income statement for the company. 4. Calculate Sandy Bank's break-even point in units and in sales dollars. Sandy Bank sells its canos for $540 each. 5. Suppose Sandy Bank wants to earn $79,000 profit this year. Calculate the number of canoes that must be sold to achieve this target. Sandy Bank sells its canoes for $540 each. Complete the following table. Note: Round your "Cost per Unit" answers to 2 decimal places. Suppose Sandy Bank sells its canoes for $540 each. Calculate the contribution margin per canoe and the contribution margin Note: Round your intermediate calculations and Unit Contribution Margin answer to two decimal places. Round your ratio. "percentage" answer to 2 decimal places. (i.e. 0.1234 should be entered as 12.34%.) This year Sandy Bank expects to sell 800 canoes for $540 each. Prepare a contribution margin income statement for the company. Note: Round your intermediate calculations to 2 decimal places. Complete this question by entering your answers in the tabs below. Calculate Sandy Bank's break-even point in units and in sales dollars. Sandy Bank sells its canoes for $540 each. Note: Do not round your intermediate calculations. Round final answers to the nearest whole number. Suppose Sandy Bank wants to earn $79,000 profit this year. Calculate the number of canoes that must be sold to achieve this target. Sandy Bank seils its canoes for $540 each. Note: Round Unit Contribution Margin to 2 decimal places. Round your answer to the nearest whole number

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditors Guide To Information Systems Auditing

Authors: Richard E. Cascarino

1st Edition

0470009896, 978-0470009895

More Books

Students also viewed these Accounting questions

Question

=+16.1. 13.91 Suppose that (12) Answered: 1 week ago

Answered: 1 week ago