Answered step by step
Verified Expert Solution
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
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
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started