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 600 800 950 Total costs Variable costs $ 129,000 $ 172,000 $ 204,250 Fixed costs $ 228,000 $ 228,000 $ 228,000 Total costs $ 357,000 $ 400,000 $ 432,250 Cost per unit Variable cost per unit $ 215.00 $ 215.00 $ 215.00 Fixed cost per unit 380.00 285.00 240.00 Total cost per unit $ 595.00 $ 500.00 $ 455.00 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 1,620 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 $140,000 profit.