Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

# of canoes sold and produced 550 750 900 Total Costs variable costs 104,500 142,500 171,000 fixed costs 198,000 198,000 198,000 total costs 302,500 340,500

# of canoes sold and produced

550 750 900
Total Costs
variable costs 104,500 142,500 171,000
fixed costs 198,000 198,000 198,000
total costs 302,500 340,500 369,000
cost per unit
variable cost per unit 190.00 190.00 190.00
fixed cost per unit 360.00 264.00 220.00
total cost per unit 550.00 454.00 410.00

Sandy Bank, Inc., makes one model of wooden canoe. and, the information for it follows:

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 1,570 canoes, compute its margin of safety in units 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.

1. Supose that Sandy Bank

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_2

Step: 3

blur-text-image_3

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

Auditing Theory And Practice

Authors: C. William Thomas

1st Edition

0534013880, 978-0534013882

More Books

Students also viewed these Accounting questions

Question

Writing a Strong Introduction

Answered: 1 week ago