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I attached a file with the problem I need to solve. Sandy Bank, Inc., makes one model of wooden canoe. Partial information for it follows:
I attached a file with the problem I need to solve.
Sandy Bank, Inc., makes one model of wooden canoe. Partial information for it follows: Required: 1. Complete the following table. (Round your "Cost per Unit" answers to 2 decimal places.) Number of Canoes Produced and Sold Total costs Variable Costs $66,880 Fixed Costs 145,640 Total Costs $212,520 Cost per Unit Variable Cost per Unit Fixed Cost per Unit Total Cost per Unit 2. Suppose Sandy Bank sells its canoes for $520 each. Calculate the contribution margin per canoe and the contribution margin ratio. (Round your "percentage" answer to 2 decimal places.) Unit Contribution Margin per Canoe Contribution Margin Ratio % 3. This year Sandy Bank expects to sell 810 canoes. Prepare a contribution margin income statement for the company. SANDY BANK, Inc. Contribution Margin Income Statement For the Current Year Contribution Margin Income from Operations (Blank spaces on the left can be filled with: Cost of goods sold, fixed costs, gross margin, interest expense ,net income after taxes, net operating income, sales revenue and variable costs.) 4. Calculate Sandy Bank's break-even point in units and in sales dollars. (Round your intermediate calculations to 2 decimals. Round your final answers to the nearest whole number.) Break-Even Units Canoes Break-Even Sales Revenue 5. Suppose Sandy Bank wants to earn $75,000 profit this year. Calculate the number of canoes that must be sold to achieve this target. (Round your answer to the next whole number.) Target Sales Units CanoesStep by Step Solution
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