Question

Number of canoes produced and sold	550	750	900
total costs
variable costs	104,500	142,500	171,000
fixed costs	198,000	198,000	198,000
total costs	302,500	340,500	369,000
cost per unit
variable cost per unit	190.00	190.00	190.00
fixed cost per unit	360.00	264.00	220.00
total cost per unit	550.00	454.00	410.00

Sandy Bank sells its canoes for $500 each.

Required:

1. Suppose that Sandy Bank raises its selling price to $500 per canoe. Calculate its new break-even point in units and in sales dollars.

2. If Sandy Bank sells 1,570 canoes, compute its margin of safety in units and as a percentage of sales. (Use the new sales price of $500.)

3. Calculate the number of canoes that Sandy Bank must sell at $500 each to generate $130,000 profit.

MArgin of safety need dollar amount please, missing that part

Answer 1