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.) Number of Canoes Produced and Sold 440 570 730 Total costs S 62,040 148,720 S 210,760 Variable Costs Fixed Costs Total Costs Cost per Unit Variable Cost per Unit Fixed Cost per Unit Total Cost per Unit 2. Suppose Sandy Bank sells its canoes for $560 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 Contribution Margin Ratio per Canoe

Explanation / Answer

1.

2.

Unit Contribution Margin = $560 - $141 = $419 per Canoe

Contribution margin ratio = (419/560) * 100 = 74.82 %

3.

4.

Break Even Units = Fixed Cost / (Selling Price per unit - Variable Cost per unit) = 148720/(560-141) = 355 Canoes

Break Even sales Revenue = $560 * 355 = $198800

5.

Target Sales Unit

= (Fixed Cost + Earning)/ (Selling Price per unit - Variable Cost per unit)

= (148720+66000)/(560-141)

= 513 Canoes

Number of Canoes Produced and Sold 440 570 730 Total costs Variable Costs 62040 80370 102930 Fixed Costs 148720 148720 148720 Total Costs 210760 229090 251650 Cost per Unit Variable Costs per Unit 141 141 141 Fixed Cost per Unit 338 260.91 203.73 Total Cost per Unit 479 401.91 344.73

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