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ACCT - Sandy Bank, Inc., makes one model of wooden canoe

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Question;Sandy Bank, Inc., makes one model of wooden canoe. Partial information for it follows:Required:1. Complete the following table. (Round your "Cost per Unit" answers to 2 decimal places.)Number of Canoes Produced and SoldTotal costsVariable Costs$66,880Fixed Costs145,640Total Costs$212,520Cost per UnitVariable Cost per UnitFixed Cost per UnitTotal Cost per Unit2.Suppose Sandy Bank sells its canoes for $520 each.Calculate the contribution margin per canoe and thecontributionmarginratio. (Roundyour "percentage" answer to 2 decimal places.)Unit Contribution Marginper CanoeContribution Margin Ratio%3.This year Sandy Bank expects to sell 810 canoes.Prepare a contribution margin income statement for thecompany.SANDY BANK, Inc.Contribution Margin Income StatementFor the Current YearContribution MarginIncome from Operations(Blank spaces on the left can be filled with: Cost of goods sold, fixed costs, gross margin,interest expense,net income after taxes, net operating income, sales revenue and variable costs.)4.Calculate Sandy Bank?s break-even point in unitsand in sales dollars. (Round your intermediatecalculations to 2 decimals. Round your finalanswers to the nearest whole number.)Break-Even UnitsCanoesBreak-Even Sales Revenue5. Suppose Sandy Bank wants to earn $75,000 profit this year. Calculate the number of canoes thatmust be sold to achieve this target. (Round your answer to the next whole number.)TargetSalesUnitsCanoes

 

Paper#43726 | Written in 18-Jul-2015

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