Question

Document2 View Table Design Layout sign Layout References Malings Review 10 AA AA EE Ate Abte AaBCD AaBbcAulede AaBb Hunding Required: 1. Complete the following table 2. Suppose Sandy Bank sells its canoes for $530 each. Calculate the contribution margin per canoe and the contribution margin ratio 3. This year Sandy Bark expects to sell 790 cances. 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 $65.000 profit this year. Calculate the number of canoes that must be sold to achieve this target. Number of Canoes Produced and Sold 420 630720 562.580 135,680 $198.240 $0 $0 Variable Costs Fixed Costs Total Costs Cost per Unit Variable Cost per Unit Fred Cost per Unit Total Cost per Unit $0.00 $0.00 $0.00 • Suppose Sandy Bank sells its cances for 30 eachCalculate the contribution margin per cance and the contribution margin ratio (Round your intermediate ca tions and answers to decimal places. Round your percentage answer Unit Contribution Margin Contribution Margin Ratio per Canon % t This year Sandy Bank expects to cances. Prepare a contribution margin income ement for the company. Hound your-bermediate cu 2 decimal places SANDY BANK, Inc Contribution Margin Income Statement For the Current Year thes 0 Focus s.

Answer 1

420 630 720 Question-1 Number of Canoes Produced and sold Total Cost Variable Cost Fixed cost Total Cost cost per unit Variable cost per unit Fixed cost Per unit 62580 135660 198240 93870 135660 229530 107280 135660 242940 149.00 323.00 149.00 215.33 149.00 188.42 Question -2 Units Contribution (530-149) 381.00 Per Canoe Contribution Margin ratio (381/530) 71.89% Question -3 (for 790Canoe) contribution Margin Income Statement sales Revenue (790*530) Variable Cost Contribution Margin Fixed cost Income From Operations 418700 117710 300990 135660 165330

Selling Price 530 Variable Cost 149.00 Fixed Cost 135660 Break Even point in Units and Dollars Break even Units (135660/381) 356 Break Even sales Revenue 188713 (or) 188705 Number of units to sold for $65,000 Profit Target sales units (Fixed cost + Targer Profit)/ Cm per unit Target Sales Units 527