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i safari File Edit View History Bookmarks Window Help ??, 58% UD *??) Tue Jun 19 6:38 PM Alex a ezto.mneducation.com 0? Home - alamo.edu Chapter 6 Exercises 11.11 points Sandy Bank, Inc., makes one model of wooden canoe. And, the information for it follows: Number of canoee produced and sold Total costs 500 850 700 S 90,000 126,000 S153,000 $209.000 245,000 5272,000 180.00 18000 180.00 S 418.00 350.00 $ 32000 Variable coets Fixed costs Total costs Coet per unit Variable cost per unit Fixed cost per urit Total cost per uni 170.00 Required: 1. Suppose that Sandy Bank raises its selling price to $800 per canoG. Cakculate its new break-even pcint in units and in sales dollars. (Do not round intermediate calculations. Round your final answers to nearest whole number.) New Break Even Units Canoes Break Even Sales Revenue 2. If Sandy Bank sells 1,550 canoes, compute its margin of safety in dollars and as a percentage of sales. (Use the new sales price of $600.) (Round your answers to the nearest whole number.) Margin ot Safety Percentage of Sale8 3. Calculate the number of cances that Sandy Bank must sell at $600 each to generate $120,000 pron. (Round your answer to the nearest whole number.) t Sales Units Cances 19 popcorntime ap

Solution

1)New break even units = 119000/(600-180) = 283 Canoes

Break even sales revenue = $170000

2) Margin of safety = (1550-283)*600 = $760200

Percentage of sales = 760200*100/930000 = 82%

3) Target sales units = (119000+120000)/420 = 569 Canoes