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 830 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.

• Required 1

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

 Number of Canoes Produced and Sold 400 620 720 Total costs Variable Costs \$60,400 Fixed Costs 135,200 Total Costs \$195,600 Cost per Unit Variable Cost per Unit Fixed Cost per Unit Total Cost per Unit
 Unit Contribution Margin per Canoe Contribution Margin Ratio %
 SANDY BANK, Inc. Contribution Margin Income Statement For the Current Year Contribution Margin Income from Operations

This year Sandy Bank expects to sell 830 canoes. Prepare a contribution margin income statement for the company. (Round your intermediate calculations to 2 decimal places.)

 Break-Even Units Canoes Break-Even Sales Revenue

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

• Required 2
• 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%.))
• Required 3
• Required 4
• Required 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. (Round Unit Contribution Margin to 2 decimal places. Round your answer to the next whole number.)

 Target Sales Units Canoes

Answer #1

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