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1. Suppose that Sandy Bank raises its selling price to $500 per canoe. Calculate its...

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Accounting

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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 1,600 canoes, compute its margin of safety in dollars 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.

Sandy Bank, Inc., makes one model of wooden canoe. And, the information for it follows: 900 Number Total costs of canoes produced and sold 550 750 Variable costs Fixed costs $112,750 $153,750 $184,500 $148,500$148,500 $148.500 $261,250 $302,250 $333,000 Total costs Cost per unit $ 205.00 205.00 205.00 Variable cost per unit Fixed cost per unit 270.00 198.00 165.00 Total cost per unit $475.00 $ 403.00 $ 370.00

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