1. Complete the following table. (Round your “Cost per Unit” answers to 2 decimal places.)
Number of Canoes Produced and Sold
Cost per Unit
Variable Cost per Unit
Fixed Cost per Unit
Total Cost per Unit
Suppose Sandy Bank sells its canoes for $520 each.
Calculate the contribution margin per canoe and the
your “percentage” answer to 2 decimal places.)
Unit Contribution Margin
Contribution Margin Ratio
This year Sandy Bank expects to sell 810 canoes.
Prepare a contribution margin income statement for the
SANDY BANK, Inc.
Contribution Margin Income Statement
For the Current Year
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.)
Calculate Sandy Bankâ€™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 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.)
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