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 Sold

Total costs

Variable Costs

$66,880

Fixed Costs

145,640

Total Costs

$212,520

Cost per Unit

Variable Cost per Unit

Fixed Cost per Unit

Total Cost per Unit

2. Suppose Sandy Bank sells its canoes for $520 each. Calculate the contribution margin per canoe and the

contribution

margin

ratio. (Round

your “percentage” answer to 2 decimal places.)

Unit Contribution Margin

per Canoe

Contribution Margin Ratio

%

3.

This year Sandy Bank expects to sell 810 canoes.

Prepare a contribution margin income statement for the

company.

SANDY BANK, Inc.

Contribution Margin Income Statement

For the Current Year

Contribution Margin

Income 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 units

and in sales dollars. (Round your intermediate

calculations to 2 decimals. Round your final

answers to the nearest whole number.)

Break-Even Units

Canoes

Break-Even Sales Revenue

5. Suppose Sandy Bank wants to earn $75,000 profit this year. Calculate the number of canoes that

must be sold to achieve this target. (Round your answer to the next whole number.)

Target

Sales

Units

Canoes