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: 650 Number of canoes produced and sold Total costs 450

image text in transcribed

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

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

MP Auditing And Assurance Services W/ACL Software CD ROM A Systematic Approach

Authors: William Messier Jr, Steven Glover, Douglas Prawitt

9th Edition

1259162346, 978-1259162343

More Books

Students also viewed these Accounting questions

Question

9. Explain the relationship between identity and communication.

Answered: 1 week ago

Question

a. How do you think these stereotypes developed?

Answered: 1 week ago

Question

a. How many different groups were represented?

Answered: 1 week ago