C ezto.mheducation.com/hm.tpx Sandy Bank, Inc., makes one model of wooden canoe.

Question

C ezto.mheducation.com/hm.tpx Sandy Bank, Inc., makes one model of wooden canoe. Partial information for it follows: Required 1. Complete the following table. (Round your "Cost per Unit" answers to 2 decimal places.) Produced and Sold 410 Total costs S 58,220 131,610 S189,830 Variable Costs Fixed Costs Total Costs Cost per Unit Variable Cost per Unit Fbxed Cost per Unit Total Cost per Unit 2. Suppose Sandy Bank sells its canoes for $510 each Calculate the contnbution margin per canoe and the contnibution decimal places. Round your "percentage" answer to 2 decimal places. (.e. 1234 should pbe entered as 12.34%) per Canoe Unit Contribution Margin Contribution Margin Ratio Round your intermediate c 3. This year Sandy Bank expects to sell 790 can O Type here to search

Explanation / Answer

Answer 1 Number of Canoes Produced and sold 410 600 790 Total Costs Variable costs $58,220.00 $85,200.00 $112,180.00 Fixed Costs $131,610.00 $131,610.00 $131,610.00 Total Costs $189,830.00 $216,810.00 $243,790.00 Cost per unit Variable cost per unit $142.00 $142.00 $142.00 Fixed cost per unit $321.00 $219.35 $166.59 Total cost per unit $463.00 $361.35 $308.59 Answer 2 Contribution margin per unit = Selling price per unit - Variable cost per unit Contribution margin per unit = $510 - $142 = $368 per canoe Contribution Margin % = Contribution margin per unit / Selling price per unit Contribution Margin % = $368 / $510 = 72.16% Answer 3 Contribution Margin Income statement SANDY BANK Inc. Contribution Margin Income statement for the Current Year Sales $402,900.00 Less : Variable Cost $112,180.00 Contribution Margin   $290,720.00 Less : Fixed Cost $131,610.00 Income from Operations $159,110.00 Answer 4 Break even point in units = Fixed cost / Contribution Margin per unit Break even point in units = $131610 / $368 = 358 Canoes Break even point in sales revenue = Fixed cost / Contribution Margin % Break even point in sales revenue = $131610 / 72.16% = $1,82,386 Answer 5 Target sales units = [Fixed cost + Profit]/Contribution margin per unit Target sales units = [$131610 + $78000]/$368 = 570 canoes

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.