Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Sandy Bank, Inc., makes one model of wcoden canoe. Partial information for it follows Required 1. Complete the following table. (Round your Cost per Unit

image text in transcribed

Sandy Bank, Inc., makes one model of wcoden canoe. Partial information for it follows Required 1. Complete the following table. (Round your "Cost per Unit" answers to 2 decimal places.) Number s Produced and S 470 Total costs S 71,910 159,330 S 231,240 Variable Costs Flxed Costs Total Costs Cost per Unit Variable Cost per Unit Fixed Cost per Unit Tolal Cost per Unit 2. Suppose Sandy Bank sells its canoes for $550 each. Calculate the contribution margin per canoe and the contribution margin ratio. (Round your intermediate calculations and final answers to 2 decimal places. Round your "percentage" answer to 2 decimal places. (i.e. .1234 should be entered as 12.34%.)) Unit Contibution Margin Contribution Margin Ratio per Canoe 3. This year Sandy Bank expects to sell 830 canoes. Prepare a contribution margin income statement for the company. (Round your intermediate calculations to 2 decimal places.) SANDY BANK, Inc Contribution Margin Income Statement For the Current Year Cost of Goods Sold Fixed Costs Gross Margin Interest Expense Net Income After Taxes Net operating Income Sales Revenue Variable Costs Contribution Margin Income from Operations 4. Cakculate sandy Bank's break-even point in units and in sales dollars. (Round Tinal answers to the nearest whole number). Break-Even Units Canoes Break-Even Sales Revenue 6. Suppose Sandy Bank wants to eam $81,000 profit this year Calculate the number of canoes that must be sold to achieve this target (Round Unit Contribution Margin to 2 decimal places Round your answer to the next whole number.) Canoes

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

Step: 3

blur-text-image

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

Cost Accounting A Managerial Emphasis

Authors: Charles T. Horngren, Srikant M. Datar, George Foster

11th Edition

013099619X, 978-0130996190

More Books

Students also viewed these Accounting questions