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

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.) 460 640 730 and S Total costs Variable Costs Fixed Costs 68,080 53.840 Total Costs Cost per Unit Vaniable Cost per Fixed Cost per Unit Total Cost per Unit 2. Suppose Sandy Bank solls its canoes for $590 each. Caloulato the contrbution margin par canoe and the contribution margin ratio. (Round your intermediate calculations and final answers to 2 decimal places. Round your "porcentage" answer to 2 decimal placos. (i.0..1234 should be ontered as 12.34%.)) Cance Ratio 3. This year Sandy Bank expects to sell 810 cano Prepara a contribution margin nome stat ment for ta oompany.(Round your intermodiate calculations to 2 decimal places.) BANK n Margin Income the Current Year Ma 4. Caloulate Sandy Bank's break-even point in units and in sales dolars. (Round final answers to the nearest whole number). Break-Even Units 5. Suppose Sandy Bank wants to eam $80,000 profit this year. Calaulate the number of canoes that must be sold to achieve this target. Round Unit Contribution Margin to 2 decimal places. Round your answer to the next whole number.)

Explanation / Answer

Dear Student Thank you for using Chegg Please find below the answer Statementshowing Computations Paticulars 460 Units 640 Units 730 Units Total Costs: Variable costs            68,080.00        94,720.00      108,040.00 Fixed costs          153,640.00      153,640.00      153,640.00 Total costs          221,720.00      248,360.00      261,680.00 Cost per unit Variable cost per unit                  148.00              148.00              148.00 Fixed cost per unit                  334.00              240.06              210.47 Total cost per unit                  482.00              388.06              358.47 2) Selling price per unit                  590.00 Variable cost per unit                  148.00 Contribution margin per unit                  442.00 CM Ratio = 442/590 74.92% 3) Sales          477,900.00 Less Variable Expenses          119,880.00 Contribution Margin          358,020.00 Fixed cost          153,640.00 Income from operations          204,380.00 4) Break even point in Units = 153640/442                  347.60 Break even point in $ = 347.60*590          205,085.07 5) Target profit            80,000.00 Fixed cost          153,640.00 Contribution desired          233,640.00 Contribution margin per unit                  442.00 No of units to be sold = 233640/442                  528.60

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