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

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Accounting

Sandy Bank, Incorporated, makes one model of wooden canoe. And, the information for it follows:
Number of canoes produced and sold 400600750
Total costs
Variable costs $ 67,500 $ 101,250 $ 126,563
Fixed costs $ 150,000 $ 150,000 $ 150,000
Total costs $ 217,500 $ 251,250 $ 276,563
Cost per unit
Variable cost per unit $ 168.75 $ 168.75 $ 168.75
Fixed cost per unit 375.00250.00200.00
Total cost per unit $ 543.75 $ 418.75 $ 368.75
Sandy Bank sells its canoes for $550 each.
Required:
Suppose that Sandy Bank raises its selling price to $675 per canoe. Calculate its new break-even point in units and in sales dollars.
If Sandy Bank sells 650 canoes, compute its margin of safety in dollars and as a percentage of sales. (Use the new sales price of $675)
Calculate the number of canoes that Sandy Bank must sell at $675 each to generate $100,000 profit.

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