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 410 570 700 Total costs Variable Costs S 58,630 Fixed Costs 131,610 Total Costs S 190,240 S Cost per Unit Variable Cost per Unit Fixed Cost per Unit Total Cost per Unit 0.00 S 0.00 $ 0.00 2. Suppose Sandy Bank sells its canoes for $500 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. (i.e. .1234 should be entered as 12.34%.)) Unit Contribution Margin per Canoe Contribution Margin Ratio

Explanation / Answer

1 Canes produced ad sold 410 570 700 Total cost Variable cost 58630 81510 100100 Fixed cost 131610 131610 131610 Total costs 190240 213120 231710 Cost per unit Variable cost per unit 143 143 143 Fixed cost per unit 321 230.89 188.01 Total cost per unit 464 373.89 331.01 Sales price per unit 500 Variable cost per unit 143 Contribution margin per unit 357 2 Contribution margin ratio = contribution margin per unit / sales price per unit Contribution margin per unit 357 Sales price per unit 500 Contribution margin ratio 71.40% 3 790 Cances Sales revenue 395000 Less Variable cost 112970 Contribution margin 282030 Less Fixed cost 131610 Income from operations 150420 4 Breakeven in sales units = Fixed cost / contribution margin per unit Fixed cost 131610 Contribution margin per unit 357 Breakeven in sales units 369 Units Breakeven in sales dollars = fixed cost / contribution margin ratio Fixed cost 131610 Contribution margin ratio 71.40% Breakeven in sales dollars 184328 5 Sales units with Target profit = (target profit + fixed cost ) / contribution margin per unit Target profit 74000 Fixed cost 131610 205610 Contribution margin per unit 357 Sales units with target profit 576 Units

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