Sandy Bank, Incorporated, makes one model of wooden canoe. And, the information for it follows: Number of
Question:
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 $ 104,500 $ 142,500 $ 171,000 Fixed costs $ 198,000 $ 198,000 $ 198,000 Total costs $ 302,500 $ 340,500 $ 369,000 Cost per unit Variable cost per unit $ 190.00 $ 190.00 $ 190.00 Fixed cost per unit 360.00 264.00 220.00 Total cost per unit $ 550.00 $ 454.00 $ 410.00 Sandy Bank sells its canoes for $375 each. Required: Suppose that Sandy Bank raises its selling price to $500 per canoe. Calculate its new break-even point in units and in sales dollars. If Sandy Bank sells 1,570 canoes, compute its margin of safety in dollars and as a percentage of sales. (Use the new sales price of $500) Calculate the number of canoes that Sandy Bank must sell at $500 each to generate $130,000 profit.
Managerial Accounting
ISBN: 978-0078025518
2nd edition
Authors: Stacey Whitecotton, Robert Libby, Fred Phillips