Question

# Sandy Bank, Inc., makes one model of wooden canoe. Partial information is given below. Required: 1....

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 \$550 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 \$81,000 profit this year. Calculate the number of canoes that must be sold to achieve this target.

Complete the following table. (Round your "Cost per Unit" answers to 2 decimal places.)

 Number of Canoes Produced and Sold 460 580 770 Total costs Variable Costs \$66,700 Fixed Costs 155,940 Total Costs \$222,640 \$0 \$0 Cost per Unit Variable Cost per Unit Fixed Cost per Unit Total Cost per Unit \$0.00 \$0.00 \$0.00
• Required 1

Suppose Sandy Bank sells its canoes for \$550 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 per Canoe Contribution Margin Ratio %

This year Sandy Bank expects to sell 810 canoes. Prepare a contribution margin income statement for the company. (Round your intermediate calculations to 2 decimal places.)

 SANDY BANK, Inc. Contribution Margin Income Statement For the Current Year Contribution Margin Income from Operations

Calculate Sandy Bank’s break-even point in units and in sales dollars. (Round final answers to the nearest whole number.)

 Break-Even Units Canoes Break-Even Sales Revenue

Suppose Sandy Bank wants to earn \$81,000 profit this year. Calculate the number of canoes that must be sold to achieve this target. (Round Unit Contribution Margin to 2 decimal places. Round your answer to the next whole number.)

 Target Sales Units Canoes