Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Sandy Bank, Inc., makes one model of wooden canoe, and, the information for it follows: 450 650 800 Number of canoes produced and sold Total

image text in transcribed
image text in transcribed
image text in transcribed
Sandy Bank, Inc., makes one model of wooden canoe, and, the information for it follows: 450 650 800 Number of canoes produced and sold Total costs Variable costs Fixed costs Total costs Cost per unit Variable cost per unit Fixed cost per unit Total cost per unit $ 65,250 $280, 800 $346,050 $ 94,250 $ 280,800 $375,050 $116,000 $280,800 $396,800 $ 145.00 624.00 $ 769.00 $ 145.00 432.00 $ 577.00 $ 145.00 351.00 $ 496.00 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 900 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 $110,000 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 Break-Even Units Break-Even Sales Revenue Canoes Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 If Sandy Bank sells 900 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 % Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Calculate the number of canoes that Sandy Bank must sell at $500 each to generate $110,000 profit. (Do not round your intermediate calculations. Round your answer to the nearest whole number.) Target Sales Units 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

Managerial Accounting

Authors: Stacey Whitecotton, Robert Libby, Fred Phillips

2nd edition

9780077493677, 78025516, 77493672, 9780077826482, 978-0078025518

More Books

Students also viewed these Accounting questions