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 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 Sandy Bank must sell at $675 each to generate $100,000profit.

Number of canoes produced and sold Total costs 400 600 750 Variable costs Fixed costs 67,500 150,000 $217,500 Total costs Cost per unit Variable cost per unit Fixed cost per unit Total cost per unit