Question

1. Compiete the following table Round your "Cost per Unit" answers to 2 decimal places.) Number of Cannes Preduced and Sold Total costs Variable Co0sts S 74.88o0 d Ce 57.020 S232800 Total Costs Cost per Unit Variable Cost per Unt Fixsd Cost per Unit Total Cost oer Unit answer to 2 decimal places. e. 1234 should be entered as 12.34 %.) ) 2. Suppese Sandy Bank sells its canoes for S550 each Calculate the contribution margin per canoe and the contribution margin ratio. (Round your intermediate calculations and final answers to 2 decimal places. Round your "percentage oer Canne Unit Cantbuton Marin Contribution Mamin Rane 3. This year Sandy Bank expects to sell 830 canoes. Prepare a contribution margin income stalement for the company (Round your intermediate calculations to 2 decimal places.) SANDY BANK, Inc Contribution Margin Inoome Statement For the Current Year Contribution Margin Income rom Operations 4. Caculate Sandy Bank's break-even point in units and in sales dolars (Round final answers to the nearest whole number. Canoes reakEven Units Ereak Even Sales Revenue 6. Suppose Sandy Bank wants to earn S76,000 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. Targe: Sales Units Canoes

Answer 1

Part-1
No. of Cases Produced & Sold	480	580	790
Total Cost
Variable cost	$74,880.00	$90,480.00	$123,240.00
		(156*580)	(156*790)
Fixed Cost	$157,920.00	$157,920.00	$157,920.00
Total Cost	$232,800.00	$248,400.00	$281,160.00
Cost per Unit
Variable cost per Unit	$156.00	$156.00	$156.00
	(74880/480)
Fixed Cost per Unit	$329.00	$272.28	$199.90
	(157920/480)	(157920/580	(157920/790)
Total Cost per Unit	$485.00	$428.28	$355.90
Part-2
Selling Price per Canoes	$550.00
Less: Variable cost per Canoes	$156.00
Contribution Margin per Canoe	$394.00
CM Ratio( 394/550)	71.64%
Part-3
Sales ( 830X550)	$456,500.00
Less: Variable cost( 156X830)	$129,480.00
Contribution Margin per Canoe	$327,020.00
Less: Fixed Cost	$157,920.00
Income from oepration	$169,100.00
Part-4
BEP Unit= Fixed Cost/ Contribution margin per Unit
=157920/394=401 Unit
BEP $= Fixed Cost/ Contribution margin Ratio
=157920/71.64%= $220435.51
Part-6
Target Sales Unit = (Fixed Cost+ Target Profit)/Contribution per Unit
(157920+76000)/394= 594 Unit

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