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Sandy Bank, Inc., makes one model of wooden canoe. and, the information for it follows:...

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Accounting

Sandy Bank, Inc., makes one model of wooden canoe. and, the information for it follows:

Number of canoes produced and sold 450 650 800
Total costs
Variable costs $ 63,000 $ 91,000 $ 112,000
Fixed costs $ 187,200 $ 187,200 $ 187,200
Total costs $ 250,200 $ 278,200 $ 299,200
Cost per unit
Variable cost per unit $ 140.00 $ 140.00 $ 140.00
Fixed cost per unit 416.00 288.00 234.00
Total cost per unit $ 556.00 $ 428.00 $ 374.00

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.

New Break Even Units:

Break Even Sales Revenue:

2. If Sandy Bank sells 700 canoes, compute its margin of safety in units and as a percentage of sales. (Use the new sales price of $500.)

Margin of Safety:

Percentage of Sales:_____%

3. Calculate the number of canoes that Sandy Bank must sell at $500 each to generate $110,000 profit.

Target Sales Units:

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