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Safari File Edit View History Bookmarks Window Help ? ? , 58%)?· ) Tue Jun 19 6:35 PM Alex C ezto.mheducation.com Home - alamo.edu Chapter 6 Exercises value 11.11 points Sandy Bank, Inc., makes one model of wooden canoe. Partial information for it follows: 1. Complete the following table. (Round your "Cost per Unit" answers to 2 decimal places.) ber of Canoes Produced and Sold 480 570 780 Total costs S 68,640 156,960 S 225,600 Variable Costs Fixed Costs Total Costs Cost per Unit Variable Cost per Unit Fixed Cost per Unit Total Cost per Unit 2. Suppose Sandy Bank sells its canoes for $500 each. Calculate the contribution margin per canoe and the contribution margin ratio. (Round your intermediate calculations and final answers to 2 decimal places. Round your "percentage" answer to 2 decimal places. (i.e. .1234 should be entered as 12.34%.)) Unit Contribution Margin Contribution Margin Ratio per Canose popcorntime apExplanation / Answer
Answers
No. of canoes produced and sold
480
570
780
Total Costs:
Variable
$ 68,640.00
$ 81,510.00
$ 1,11,540.00
Fixed
$ 1,56,960.00
$ 1,56,960.00
$ 1,56,960.00
Total Costs
$ 2,25,600.00
$ 2,38,470.00
$ 2,68,500.00
Cost per unit:
Variable cost per unit
$ 143.00
$ 143.00
$ 143.00
Fixed cost per unit
$ 327.00
$ 275.37
$ 201.23
Total Cost per unit
$ 470.00
$ 418.37
$ 344.23
---Working for above---
No. of canoes produced and sold
480
570
780
Total Costs:
Variable
68640
=570*143
=780*143
Fixed
156960
156960
156960
Total Costs
TOTAL
TOTAL
TOTAL
Cost per unit:
Variable cost per unit
=68640/480
=81510/570
=111540/780
Fixed cost per unit
=156960/480
=156960/570
=156960/780
Total Cost per unit
TOTAL
TOTAL
TOTAL
A
Unit Sale price
$ 500.00
B
Unit Variable cost
$ 143.00
C=A-B
Unit Contribution margin
$ 357.00
D=(C/A) x 100
Contribution margin ratio
71.40%
A
Sales revenue [850 x $500]
$ 4,25,000.00
B
Variable cost [850 x $143]
$ 1,21,550.00
C=A-B
Contribution margin
$ 3,03,450.00
D
Fixed Cost
$ 1,56,960.00
E=C - D
Income from Operations
$ 1,46,490.00
A
Total fixed cost
$ 1,56,960.00
B
Unit Contribution margin
$ 357.00
C=A/B
Break Even units
440
D
Contribution margin ratio
71.40%
E=A/D
Break Even Sales revenue
$ 2,19,832
A
Target Profits
$ 85,000.00
B
Total fixed cost
$ 1,56,960.00
C=A+B
Total contribution margin required
$ 2,41,960.00
D
Unit Contribution margin
$ 357.00
E=C/D
No. of canoes to be sold to earn target profits
678
No. of canoes produced and sold
480
570
780
Total Costs:
Variable
$ 68,640.00
$ 81,510.00
$ 1,11,540.00
Fixed
$ 1,56,960.00
$ 1,56,960.00
$ 1,56,960.00
Total Costs
$ 2,25,600.00
$ 2,38,470.00
$ 2,68,500.00
Cost per unit:
Variable cost per unit
$ 143.00
$ 143.00
$ 143.00
Fixed cost per unit
$ 327.00
$ 275.37
$ 201.23
Total Cost per unit
$ 470.00
$ 418.37
$ 344.23
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