Question

University Libraries W-Exchange Library Search Interlibrary Loan W Course Reserves Sandy Bank, Inc., makes one model of wooden canoe. Partial information is given below. Required: 1. Complete the following table. 2. Suppose Sandy Bank sells its canoes for $580 each. Calculate the contribution margin per canoe and the contribution margin ratio 3. This year Sandy Bank expects to sell 810 canoes. Prepare a contribution margin income statement for the company. 4. Calculate Sandy Bank's break-even point in units and in sales dollars. 5. Suppose Sandy Bank wants to earn $67,000 profit this year. Calculate the number of canoes that must be sold to achieve this target ALLEREDE Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required * Required 5 Complete the following table. (Round your "Cost per Unit" answers to 2 decimal places) 130 20 000 62.780 Number of Canoes Produced and Sold Total costs Variable Costs Fored Costs Total Costs Cost per Unit Variable Cost per Unit Fbred Cost per Unit Total Cost per Unit 202.960 000 $ Required 2 >

Answer 1

	Number of Canoes produced and sold				430	620	800
	total costs
	variable costs				62,780	90520	116800
	fixed costs				140,180	140,180	140,180
	total costs				202,960	230700	256980
	cost per unit
	variable cost per unit				146.00	146.00	146.00
	fixed cost per unit				326.00	226.10	175.23
	total cost per unit				472.00	372.10	321.23
2)	unit contribution margin			(580-146)=		434	per canoe
	contribution margin ratio			(434/580)=		74.83%
3)		contribution margin income statement
	sales		(810*580)			469800
	less variable expense (840*149)		(810*146)			118260
	Contribution margin					351540
	less fixed expense					140,180
	Net income					211,360
4)	Break even units					324	canoes
	break even sales revenue					187920
	BEP(units) = fixed cost/contribution margin per unit
		140810/434
	BEP(sales) = 324*580
		187920
		if this answer is incorrect then try 140810/74.83%=
5)	Target sale units					433	canoes
	(140810+47000)/434
	432.7419