Sandy Bank, Inc., makes one model of wooden canoe. Partial information is given below.

Required:

1. Complete the following table.

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 $65,000 profit this year. Calculate the number of canoes that must be sold to achieve this target.

Number of Canoes Produced and Sold	470	650	760
Total costs
Variable Costs	$75,200
Fixed Costs	151,340	151,340	151,340
Total Costs	$226,540	$151,340	$151,340
Cost per Unit
Variable Cost per Unit
Fixed Cost per Unit
Total Cost per Unit	$0.00	$0.00	$0.00

Unit Contribution Margin		per Canoe
Contribution Margin Ratio		%

• Cost of Goods Sold
• Fixed Costs
• Gross Margin
• Interest Expense
• Net Income After Taxes
• Net Operating Income
• Sales Revenue
• Variable Costs

• This year Sandy Bank expects to sell 750 canoes. Prepare a contribution margin income statement for the company. (Round your intermediate calculations to 2 decimal places.)

  SANDY BANK, Inc.
  Contribution Margin Income Statement
  For the Current Year
  Contribution Margin
  Income from Operations

Calculate Sandy Banks break-even point in units and in sales dollars. (Round final answers to the nearest whole number.)

Break-Even Units		Canoes
Break-Even Sales Revenue

• Suppose Sandy Bank wants to earn $65,000 profit this year. Calculate the number of canoes that must be sold to achieve this target. (Round Unit Contribution Margin to 2 decimal places. Round your answer to the next whole number.)

  Target Sales Units

  Canoes