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FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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
Transcribed Image Text:Required:
1. Complete the following table.
2. Suppose Sandy Bank sells its canoes for $530 each. Calculate the contribution margin per canoe and the contribution margin ratio.
3. This year Sandy Bank expects to sell 810 canoes for $530 each. Prepare a contribution margin income statement for the company.
4. Calculate Sandy Bank's break-even point in units and in sales dollars. Sandy Bank sells its canoes for $530 each.
5. Suppose Sandy Bank wants to earn $67,000 profit this year. Calculate the number of canoes that must be sold to achieve this
target. Sandy Bank sells its canoes for $530 each.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2 Required 3
Number of Canoes Produced and Sold
Total costs
Complete the following table.
Note: Round your "Cost per Unit" answers to 2 decimal places.
Variable Costs
Fixed Costs
Total Costs
Cost per Unit
Variable Cost per Unit
Fixed Cost per Unit
Required 4
Total Cost per Unit
$
$
410
Required 5
< Required 1
61,910
137,760
199,670
650
Required 2 >
750
Expert Solution
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Step 1: Explanation of break even point
VIEW Step 2: Computation of the amounts for the table.
VIEW Step 3: 2) Calculation of contribution margin per unit and contribution margin ratio.
VIEW Step 4: 3) Computation of contribution margin income statement.
VIEW Step 5: 4) Calculation of break even point in units and dollars.
VIEW Step 6: 5) Computation of target sales.
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