Paddle Away, Inc., makes one model of wooden canoe. Partial information for it follows.

Required:

1. Complete the preceding table.
2. Suppose Paddle Away sells its canoes for \($550\) each. Calculate the contribution margin per canoe and the contribution margin ratio.
3. This year Paddle Away expects to sell 820 canoes. Prepare a contribution margin income statement for the company.
4. Calculate Paddle Away’s break-even point in units and in sales dollars.
5. Suppose Paddle Away wants to earn \($75,000\) profit this year. Calculate the number of canoes that must be sold to achieve this target.

Transcribed Image Text:

Number of canoes produced and sold Total costs Variable costs Fixed costs Total costs Cost per unit Variable cost per unit Fixed cost per unit Total cost per unit 450 600 750 $ 67,500 ? ? 150,000 ? ? $217,500 ? ? ??? ??? ???