Sandy Bank, Inc., makes one model of wooden canoe. Partial information for it follows:

Number of Canoes Produced and Sold		450		650		800
Total costs
Variable costs	$	72,000	$	104,000	$	128,000
Fixed costs		187,200		187,200		187,200
Total costs	$	259,200	$	291,200	$	315,200
Cost per unit
Variable cost per unit	$	160.00	$	160.00	$	160.00
Fixed cost per unit		416.00		288.00		234.00
Total cost per unit	$	576.00	$	448.00	$	394.00

Sandy Bank sells its canoes for $450 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. (Round your "Unit" answer to the nearest whole number. Round your intermediate calculations to whole dollars and percentages.)

New Break-Even Units		Canoes
Break-Even Sales Revenue

2. If Sandy Bank sells 1,510 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
Percantage of Sales		%

3. Calculate the number of canoes that Sandy Bank must sell at $500 each to generate $110,000 profit. (Round your answer to the nearest whole number.)

Target Sales Units

Canoes