Question

Required: 1. Complete the following table. 2. Suppose Sandy Bank sells its canoes for $550 each. Calculate the contribution margin per canoe and the contribution margin ratio. 3. This year Sandy Bank expects to sell 790 canoes. Prepare a contribution margin income statement for the company. 4. Calculate Sandy Bank's break-even point in units and in sales dollars. 5. Suppose Sandy Bank wants to earn $81,000 profit this year. Calculate the number of canoes that must be sold to achieve this target. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Complete the following table. (Round your "Cost per Unit" answers to 2 decimal places.) 430 610 7 90 Number of Canoes Produced and Sold Total costs Variable Costs Fixed Costs 61,920 139,320 201,240 Total Costs $ Cost per Unit Variable Cost per Unit Fixed Cost per Unit Total Cost per Unit < Required 1 Required 2 >

Answer 1

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Answers are highlighted in yellow: Solution: 430610790 Particulars Total Costs: Variable costs (units x rate) Fixed Costs (will remain same) Total Costs Cost per unit: Variable cost per unit (will remain same) Fixed cost per unit (Cost/units) Total Cost per unit 61920 139320 201240 87840 113760 (61920/430)*610; 790 139320 139320 227160253080 $ 144.00 $ 324.00 $ 468.00 $144.00 $ 228.39 $ 372.39 $144.00 $ 176.35 $ 320.35