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: 550 750 900 $ 112,750 $ 148,500 $261,250 Number of canoes produced and sold Total costs Variable costs Fixed costs Total costs Cost per unit Variable cost per unit Fixed cost per unit Total cost per unit $ 153,750 $ 148,500 $ 302,250 $184,500 $ 148,500 $333,000 $ 205.00 270.00 $ 475.00 $ 205.00 198.00 $ 403.00 $ 205.00 165.00 $ 370.00 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 1,600 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 $130,000 profit. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Suppose that Sandy Bank raises its selling price to $500 per canoe. Calculate its new break-even point in units and in sales dollars. (Do not round intermediate calculations. Round your final answers to nearest whole number.) Canoes New Break-Even Units Break-Even Sales Revenue Required 1 Required 2 > 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 1,600 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 $130,000 profit. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 If Sandy Bank sells 1,600 canoes, compute its margin of safety in dollars and as a percentage of sales. (Use the new sales price of $500.) (Round your answers to the nearest whole number.) Margin of Safety Percentage of Sale % 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 1,600 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 $130,000 profit. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Calculate the number of canoes that Sandy Bank must sell at $500 each to generate $130,000 profit. (Do not round your intermediate calculations. Round your answer to the nearest whole number.) Target Sales Units Canoes (Required 2 Required 3
