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Paddle Away, Inc., makes one model of wooden canoe. Partial information for it follows. Number of canoes produced and sold------490 Total costs Variable costs ------$73,500

Paddle Away, Inc., makes one model of wooden canoe. Partial information for it follows. Number of canoes produced and sold------490 Total costs Variable costs ------$73,500 Fixed costs---------159,740 Total costs------------$233,240 Cost per unit Variable cost per unit------------$150.00 Fixed cost per unit---------------$326.00 Total cost per unit----------------$476.00 1: Suppose that Paddle Away raises its selling price to $710 per canoe. Calculate its new break-even point in units and in sales dollars. (Round your break-even units answer to the next whole number. Round your sales answer to the nearest whole number. Omit the "$" sign in your response.) New break-even units :______ canoes Break-even sales: $______ 2: If Paddle Away sells 690 canoes, compute its margin of safety in dollars and as a percentage of sales. (Use the new sales price of $710.) (Round margin of safety to the nearest whole number. Round percentage of sales to 2 decimal places. Omit the "$" & "%" signs in your response.) Margin of safety: $______ Percentage of sales:______% 3: Calculate the number of canoes that Paddle Away must sell at $710 each to generate $116,000 profit. (Round your answer to the next whole number.) Target sales units:______ canoes

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