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Sandy Bank, Inc., makes one model of wooden canoe. And, the information for it follows: 650 Number of canoes produced and sold Total costs 450
Sandy Bank, Inc., makes one model of wooden canoe. And, the information for it follows: 650 Number of canoes produced and sold Total costs 450 800 Variable costs Fixed costs S 67,500 S 97,500 $120,000 $374,400 S374,400 $374,400 $441,900 S471,900 $494,400 Total costs Cost per unit S 150.00 150.00 S 150.00 Variable cost per unit Fixed cost per unit Total cost per unit 576.00 832.00 S 982.00 468.00 S 618.00 S 726.00 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 900 canoes, compute its margin of safety in dollars and as a percentage of sales. (Use the new sales price of $600.) (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 $600 each to generate $110,000 profit. (Round your answer to the nearest whole number.) Canoes
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