Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Sandy Bank, Inc., makes one model of wooden cance. And, the information for it follows: Number of canoes produced and sold Total costs 400 600

image text in transcribed

Sandy Bank, Inc., makes one model of wooden cance. And, the information for it follows: Number of canoes produced and sold Total costs 400 600 50 ariable costs Fixed costs S 52,000 78,000 $97,500 $180,000 $180,000 180,000 $232.000 $258,000 $277.500 Total costs Cost per unit Variable cost per unit Fixed cost per unit 130.00 130.00 130.00 240.00 300.00 $ 580.00 430.00 450.00 Total cost per unit 370.00 Required: 1. Suppose that Sandy Bank raises its selling price to S500 per canoe. Calculate its new break-even point in units and in sales dollars. (Do not round intermediate calculations. Round your final answers to nearest whole number.) Answer is complete and correct. New Break-Even Units Canoes Break-Even Sales Revenue 243,243 2. If Sandy Bank sells 680 cances, compute its margin of safety in dollars and as a percentage of sales. (Use the new sales price of $500.) (Round your answers to the nearest whole number.) Margin of Safety Percentage of Sales 3. Calculate the number of canoes that Sandy Bank must sell at S500 each to generate S100,000 profit. (Round your answer to the nearest 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

More Books

Students also viewed these Accounting questions