Question
Sandy Bank, Inc., makes one model of wooden canoe. Partial information is given below. Required: 1. Complete the following table. Sandy Bank, Inc., makes one
Sandy Bank, Inc., makes one model of wooden canoe. Partial information is given below.
Required:
1. Complete the following table.
Sandy Bank, Inc., makes one model of wooden canoe. Partial information is given below.
Required:
1. Complete the following table.
Number of canoes Produced and Sold | 490 | 590 | 800 |
Variable Cost | 77910 | ||
Fixed Cost | 160720 | ||
Total Cost | 238630 | ||
Cost per unit: | |||
Variable Cost per Unit | |||
Fixed Cost per Unit | |||
Total Cost Per Unit |
2. Suppose Sandy Bank sells its canoes for $580 each. Calculate the contribution margin per canoe and the contribution margin ratio.
Contribution margin statement for current year:
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Contribution Margin |
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Income from Operation |
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3. This year Sandy Bank expects to sell 750 canoes. Prepare a contribution margin income statement for the company.
4. Calculate Sandy Banks break-even point in units and in sales dollars.
5. Suppose Sandy Bank wants to earn $69,000 profit this year. Calculate the number of canoes that must be sold to achieve this target.
2. Suppose Sandy Bank sells its canoes for $580 each. Calculate the contribution margin per canoe and the contribution margin ratio.
3. This year Sandy Bank expects to sell 750 canoes. Prepare a contribution margin income statement for the company.
4. Calculate Sandy Banks break-even point in units and in sales dollars.
5. Suppose Sandy Bank wants to earn $69,000 profit this year. Calculate the number of canoes that must be sold to achieve this target.
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