Refer to the information in E6-4 regarding Paddle Away.

Required:

1. Suppose that Paddle Away raises its selling price to \($675\) per canoe. Calculate its new break-even point in units and in sales dollars.

2. If Paddle Away sells 650 canoes, compute its margin of safety in units and as a percentage of sales. (Use the new sales price of $675.)

3. Calculate the number of canoes that Paddle Away must sell at \($675\) each to generate \($100,000\) profit.

Data from E6-4

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

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 ? ? ??? ??? ???