# Question: Sandy Bank Inc makes one model of wooden canoe Partial

Sandy Bank, Inc. makes one model of wooden canoe. Partial information for it follows:

Required:

1. Complete the preceding 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 820 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 $75,000 profit this year. Calculate the number of canoes that must be sold to achieve thistarget.

Required:

1. Complete the preceding 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 820 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 $75,000 profit this year. Calculate the number of canoes that must be sold to achieve thistarget.

## Answer to relevant Questions

Refer to the information in E6-5 regarding Sandy Bank.Required:1. Suppose that Sandy Bank raises its selling price to $675 per canoe. Calculate its new break-even point in units and in sales dollars.2. If Sandy Bank sells ...Refer to the information regarding Dana’s Ribbon World in E6-10.Variable cost per rosette ...... $ 1.60Sales price per rosette ...... 3.00Total fixed costs per month .... 889.00Required:1. Suppose Dana’s would like ...Tiago makes three models of camera lens. Its product mix and contribution margin per unit follow:Required:1. Determine the weighted-average contribution margin per unit.2. Determine the number of units of each product that ...Ramada Company produces one golf cart model. A partially complete table of company costs follows:Required:1. Complete the table.2. Ramada sells its carts for $1,200 each. Prepare a contribution margin income statement for ...Companies must make many decisions regarding day-to-day business activities. For each of the following decision-making situations, discuss its impact on a company’s contribution margin, break-even point, margin of safety, ...Post your question