E6-6 (Algo) Identifying Break-Even Point, Analyzing How Price Changes Affect Profitability; Calculating Margin of Safety, Target Profit [LO 6-1, 6-2, 6-3, 6-4] Sandy Bank, Inc., makes one model of wooden canoe. and, the information for it follows: Number of canoes produced and sold Total costs Variable costs Fixed costs 450 650 800 Total costs $ 65,250 $280,800 $346,050 $ 94,250 $280,800 $375,050 $116,000 $280,800 $396,800 Cost per unit Variable cost per unit Fixed cost per unit $ 145.00 624.00 $ 145.00 432.00 $ 145.00 351.00 Total cost per unit $ 769.00 $ 577.00 $ 496.00 Sandy Bank sells its canoes for $375 each. Required: 1. Suppose that Sandy Bank raises its selling price to $500 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 $500.) 3. Calculate the number of canoes that Sandy Bank must sell at $500 each to generate $110,000 profit.