I have 1-3 understood. Confused on number 4 & 5 though Sandy Bank, Inc., makes o
ID: 2544971 • Letter: I
Question
I have 1-3 understood. Confused on number 4 & 5 though
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.) Number of Canoes Produced and Sold 430 600 700 Total costs $ 61,920$ 86,400$ 100,800 140,180 $ 202,100$226,580$240,980 Variable Costs Fixed Costs 140,180 140,180 Total Costs Cost per Unit $144.00$ 144.00144.00 203.11 $470.00377.63347.11 Variable Cost per Unit Fixed Cost per Unit 326.00 233.63 Total Cost per Unit 2. Suppose Sandy Bank sells its canoes for $570 each. Calculate the contribution margin per canoe and the contribution margin ratio (Round your intermediate calculations and final answers to 2 decimal places. Round your "percentage" answer to 2 decimal places. (i.e. .1234 should be entered as 12.34%.)) Unit Contribution Margin$ 426.00 per Canoe Contribution Margin Ratio 74.74 3. This year Sandy Bank expects to sell 830 canoes. Prepare a contribution margin income statement for the company. (Round your intermediate calculations to 2 decimal places.) SANDY BANK, Inc Contribution Margin Income Statement For the Current Year Sales Revenue 473,100 riable Costs 119,520 Contribution Margin 353,580 Fixed Costs 140,180 Income from Operations $ 213,400Explanation / Answer
4.break even point in units and sales dollars:
note:
break even units = fixed costs / contribution per unit
=>$140,180 / $426
=>329.06
=>329 units....(to nearest whole number).
break even sales revenue = break even units * selling price per unit
=>329 units * $570
=>$187,530.
5.if $82,000 profit is required.
number of units to be sold = (fixed cost + desired profit) / contribution per unit
=> ($140,180 + $82,000) / $426
=>521.55.
=>522 canoes......(to next whole number).
break even units 329 canoes break even sales revenue $187,530Related Questions
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