Sandy Bank, Inc., makes one model of wooden canoe. Partial information for it fo

Question

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.) r of Canoes Produced and Sold 480 560 740 Total costs 69,600 162,240 231,840 s Variable Costs Fixed Costs Total Costs Cost per Unit Variable Cost per Unit Fixed Cost per Unit Total Cost per Unit 0.00S 0.00$ 0.00 2. Suppose Sandy Bank sells its canoes for $590 each. Calculate the contribution margin per canoe and the contribution margin ratio. Round your intermediate calculations and final answers to 2 decimal places. Round your "percentage" answer to 2 decimal places. (Le, .1234 should be entered as 12.34%.)) Unit Contribution Margin Contribution Margin Ratio per Canoe

Explanation / Answer

Dear Student Thank you for using Chegg Please find below the answer Statementshowing Computations Paticulars 480 Units 560 Units 740 Units Total Costs: Variable costs                     69,600.00                     81,200.00                   107,300.00 Fixed costs                   162,240.00                   162,240.00                   162,240.00 Total costs                   231,840.00                   243,440.00                   269,540.00 Cost per unit Variable cost per unit                           145.00                           145.00                           145.00 Fixed cost per unit                           338.00                           289.71                           219.24 Total cost per unit                           483.00                           434.71                           364.24 2) Selling price per unit                           590.00 Variable cost per unit                           145.00 Contribution margin per unit                           445.00 CM Ratio = 445/590 75.42% 3) Sales                   448,400.00 Less Variable Expenses                   110,200.00 Contribution Margin                   338,200.00 Fixed cost                   162,240.00 Income from operations                   175,960.00 4) Break even point in Units = 162240/445                           364.58 Break even point in $ = 364.58*590                   215,104.72 5) Target profit                     71,000.00 Fixed cost                   162,240.00 Contribution desired                   233,240.00 Contribution margin per unit                           445.00 No of units to be sold = 233240/445                           524.13

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