E6-6 (Algo) Identifying Break-Even Point, Analyzing How Price Changes Affect Profitability; 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: 500 700 850 Number of canoes produced and sold Total costs Variable costs Fixed costs $ 90,000 $119,000 $209,000 $126,000 $119,000 $245,000 $153,000 $119,000 $272,000 Total costs Cost per unit Variable cost per unit Fixed cost per unit Total cost per unit $ 180.00 238.00 $ 418.00 $ 180.00 170.00 $ 350.00 $ 180.00 140.00 $ 320.00 Sandy Bank sells its canoes for $475 each. Required: 1. Suppose that Sandy Bank raises its selling price to $600 per canoe. Calculate its new break-even point in units and in sales dollars. 2. If Sandy Bank sells 1,550 canoes, compute its margin of safety in dollars and as a percentage of sales. (Use the new sales price of $600.) 3. Calculate the number of canoes that Sandy Bank must sell at $600 each to generate $120,000 profit. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Suppose that Sandy Bank raises its selling price to $600 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.) New Break-Even Units Canoes Break-Even Sales Revenue