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Sandy Bank, Inc

Accounting

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Sandy Bank, Inc., makes one model of wooden canoe. And, the information for it follows: 550 750 900 Number of canoes produced and sold Total costs Variable costs Fixed costs Total costs Cost per unit Variable cost per unit Fored cost per unit Total cost per unit $110,000 $ 99,000 $209,000 $150,000 $ 99,000 $249,000 $180,000 $ 99,000 $279,000 $ 200.00 180.00 $ 380.00 $ 200.00 132.00 $ 332.00 $ 200.00 110.00 $ 310.00 Required: 1. Suppose that Sandy Bank raises its selling price to $500 per cance. Calculate its new break-even point in units and in sales dollars. (De calculations. Round your final answers to nearest whole number.) New Break-Even Units Canoes Break-Even Sales Revenue 2. If Sandy Bank sols 1.500 canoes, compute its margin of safety in dollars and as a percentage of sales. (Use the new sales price of $500) nearest whole number) Margin of Safety Percentage of Sales
29 3. Calculate the number of cances that Sandy Bank must sell at $500 each to generate 3130,000 profit. (Round your answer to the nearest whole number) Target Sales