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Sandy Bank, Inc, makes one model of wooden canoe Partial infermation for it ollo

ID: 2537601 • Letter: S

Question

Sandy Bank, Inc, makes one model of wooden canoe Partial infermation for it ollows Required: 1. Complete the following table. (Round your "Cost per Unir anawers to 2 decimal places) of Canoes Produced and 420 otal costs Variable Cost 58.800 138.600 S 197 400 S Fxed Costs otal Costs Cost per Unit Variable Cost per Unit Fixed Cont per Unit Total Cost per Unt 0.00 0.00 or $510 each Calcuiate the contribution margin per cance and the conerbution margn ratio (Round your intermediate calculations andwers to 2 decima places. Round your "percentage" answer to 2 decimal places. (i.e. 1234 Unit Contribuion Margin Margin Rabo

Explanation / Answer

1-

Units

420

610

730

total cost

variable cost

58800

85400

102200

fixed cost

138600

138600

138600

total cost

197400

224000

240800

cost per unit

variable cost per unit

140

140

140

fixed cost per unit

330

227.2131

189.863

total cost per unit

470

367.2131

329.863

2-

selling price per unit

510

less variable cost per unit

140

contribution margin per unit

370

contribution margin ratio

contribution margin/selling price

72.55%

3-

sales

780*510

397800

less variable cost

780*140

109200

contribution margin

288600

fixed cost

138600

EBIT

150000

4-

break even point in units =fixed cost/contribution margin per unit

138600/370

374.5946

break even point in dollar = fixed cost/contribution margin ratio

138600/72.55%

191040.7

5-

break even point in units to earn profit of 85000

(fixed cost +target profit)/contribution margin per unit

(138600+85000)/370

break even point in units

604.3243

1-

Units

420

610

730

total cost

variable cost

58800

85400

102200

fixed cost

138600

138600

138600

total cost

197400

224000

240800

cost per unit

variable cost per unit

140

140

140

fixed cost per unit

330

227.2131

189.863

total cost per unit

470

367.2131

329.863

2-

selling price per unit

510

less variable cost per unit

140

contribution margin per unit

370

contribution margin ratio

contribution margin/selling price

72.55%

3-

sales

780*510

397800

less variable cost

780*140

109200

contribution margin

288600

fixed cost

138600

EBIT

150000

4-

break even point in units =fixed cost/contribution margin per unit

138600/370

374.5946

break even point in dollar = fixed cost/contribution margin ratio

138600/72.55%

191040.7

5-

break even point in units to earn profit of 85000

(fixed cost +target profit)/contribution margin per unit

(138600+85000)/370

break even point in units

604.3243

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