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 $590 each. Calculate the contribution margin per canoe and the contribution margin ratio. 3. This year Sandy Bank expects to sell 770 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 $75,000 profit this year. Calculate the number of canoes that must be sold to achieve this target. 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 $590 each. Calculate the contribution margin per canoe and the contribution margin ratio. 3. This year Sandy Bank expects to sell 770 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 $75,000 profit this year. Calculate the number of canoes that must be sold to achieve this target. Number of Canoes Produced and Sold 460 590 740 Total costs Variable Costs $69,460 $89,090 Fixed Costs 152,260 195,290 Total Costs $221,720 $284,380 $0 Cost per Unit Variable Cost per Unit $151.00 Fixed Cost per Unit 331.00 Total Cost per Unit $482.00 $0.00 $0.00
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 $590 each. Calculate the contribution margin per canoe and the contribution margin ratio.
3. This year Sandy Bank expects to sell 770 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 $75,000 profit this year. Calculate the number of canoes that must be sold to achieve this target.
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 $590 each. Calculate the contribution margin per canoe and the contribution margin ratio.
3. This year Sandy Bank expects to sell 770 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 $75,000 profit this year. Calculate the number of canoes that must be sold to achieve this target.
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