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: Number of cances produced and sold Total costs 550 750

image text in transcribed

Sandy Bank, Inc., makes one model of wooden canoe. And, the information for it follows: Number of cances produced and sold Total costs 550 750 900 Variable costs Fixed costs $107,250 146,260 $175,500 $247,500 $247,500 $247.500 3354,750 393,750 S423,000 Total costs Cost per unit $ 195.00 195.00 S195.00 Variable cost per unit Fixed cost per unit Total cost per unit 450.00 330.00 645.00 525.00 S 470.00 Required: 1. Suppose that Sandy Bank raises its selling price to $600 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 1,580 cances, compute its margin of safety in dollars and as a percentage of sales. (Use the new sales prica of $800.) (Round your answers to the nearest whole number.) Margin of Safety Percentage af Sales 3. Calculate the number of canoes that Sandy Bank must sell at $600 each to generate $130,000 profit. (Round your answer to the nearest whole number.) 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

The Solitary Auditor

Authors: Michael Knapp

1st Edition

161163878X, 978-1611638783

More Books

Students also viewed these Accounting questions

Question

=+ (b) Show that log2 n + log2 log, log, n is an inner boundary.

Answered: 1 week ago

Question

What is job enlargement ?

Answered: 1 week ago

Question

what is the most common cause of preterm birth in twin pregnancies?

Answered: 1 week ago

Question

Which diagnostic test is most commonly used to confirm PROM?

Answered: 1 week ago

Question

What is the hallmark clinical feature of a molar pregnancy?

Answered: 1 week ago

Question

Explain how to reward individual and team performance.

Answered: 1 week ago