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# 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
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