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Sandy Bank, Inc., makes one model of wooden canoe. And, the information for it follows: Number of canoes produced and sold Total costs 550 750
Sandy Bank, Inc., makes one model of wooden canoe. And, the information for it follows: Number of canoes produced and sold Total costs 550 750 900 Variable costs Fixed costs $110,000 $150,000 $180,000 $99,000 S 99,000 $ 99,000 $209,000 $249,000 $279,000 Total costs Cost per unit Variable cost per unit Fixed cost per unit Total cost per unit 200.00 180.00 380.00 200.00 200.00 110.00 332.00 310.00 132.00 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 1,590 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 Sale:s 3. Calculate the number of canoes that Sandy Bank must sell at $500 each to generate $130,000 profit. (Round your answer to the nearest whole number. Target Sales Units Canoes
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