Sandy Bank, Inc., makes one model of wooden canoe. And, the information for it follows:

Number of canoes produced and sold		450		650		800
Total costs
Variable costs	$	63,000	$	91,000	$	112,000
Fixed costs	$	187,200	$	187,200	$	187,200
Total costs	$	250,200	$	278,200	$	299,200
Cost per unit
Variable cost per unit	$	140.00	$	140.00	$	140.00
Fixed cost per unit		416.00		288.00		234.00
Total cost per unit	$	556.00	$	428.00	$	374.00

Required: 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. (Do not round intermediate calculations. Round your final answers to nearest whole number.)

New Break Even Units: ______ Canoes

Break Even Sales Revenue: _______ 2. If Sandy Bank sells 700 canoes, 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 $500 each to generate $110,000 profit. (Round your answer to the nearest whole number.)

Target Sales Unit: _____ Canoes