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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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