E6-6 (Algo) Identifying Break-Even Point, Analyzing How Price Changes Affect Profitabllity; Calculating Margin of Safety, Target Profit [LO 6-1, 6-2, 6-3, 6-4) Sandy Bank, Inc., makes one model of wooden canoe, and the information for it follows: 400 680 750 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 $ 52,00 $180,880 $ 232,880 $ 78,eee $180, see $258,888 $ 97,500 $180, eee $277,500 $ 130.00 450.00 $ 580.89 $ 130.00 380.89 $ 430.89 $ 130.80 240.00 $ 370.00 Sandy Bank sells its canoes for $375 each. Required: 1. Suppose that Sandy Bank raises its selling price to $500 per canoe. Calculate its new break-even point in units and in sales dollars. 2. If Sandy Bank sells 680 canoes, compute its margin of safety in dollars and as a percentage of sales. (Use the new sales price of $500.) 3. Calculate the number of canoes that Sandy Bank must sell at $500 each to generate $100.000 profit. Suppose that Sandy Bank raises its selling price to $500 per canoe. Calculate its new break-even point in units and in sales dollars. (Do not round intermediate calculations. Round your final answers to nearest whole number.) Canoes New Break-Even Units Break-Even Sales Revenue If Sandy Bank sells 680 canoes, compute its margin of safety in dollars and as a percentage of sales. (Use the new sales price of $500.) (Round your answers to the nearest whole number.) Margin of Safety Percentage of Sales 96 Calculate the number of canoes that Sandy Bank must sell at 5500 each to generate $100,000 profit. (Do not round your intermediate calculations. Round your answer to the nearest whole number.) Target Sales Units Canoes