Question
Sandy Bank, Inc., makes one model of wooden canoe and, the information for it follows: Number of canoes produced and sold 400 600 750
Sandy Bank, Inc., makes one model of wooden canoe and, the information for it follows: Number of canoes produced and sold 400 600 750 Total costs Variable costs $ 54,000 Fixed costs $ 60,000 $ 81,000 $ 60,000 $101,250 $ 60,000 Total costs $114,000 $141,000 $161,250 Cost per unit Variable cost per unit Fixed cost per unit $ 135.00 150.00 $285.00 $135.00 100.00 $235.00 $ 135.00 80.00 $215.00 Total cost per unit. Sandy Bank sells its canoes for $375 each. 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. 2. If Sandy Bank sells 690 canoes, compute its margin of safety in dollars and as a percentage of sales. (Use the new sales price of $500) 3. Calculate the number of canoes that Sandy Bank must sell at $500 each to generate $100,000 profit. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 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 Rreak-Fvan Units Cannes
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