Sandy Bank, Incorporated, makes one model of wooden canoe. And, the information for it follows:

Number of canoes produced and sold	550	750	900
Total costs
Variable costs	$ 112,750	$ 153,750	$ 184,500
Fixed costs	$ 148,500	$ 148,500	$ 148,500
Total costs	$ 261,250	$ 302,250	$ 333,000
Cost per unit
Variable cost per unit	$ 205.00	$ 205.00	$ 205.00
Fixed cost per unit	270.00	198.00	165.00
Total cost per unit	$ 475.00	$ 403.00	$ 370.00

Sandy Bank sells its canoes for $375 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.
2. If Sandy Bank sells 1,600 canoes, compute its margin of safety in dollars and as a percentage of sales. (Use the new sales price of $500)
3. Calculate the number of canoes that Sandy Bank must sell at $500 each to generate $130,000 profit.