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C O ezto.mheducation.com/hm.tpx pps ?Bookmarks 0.77 points Sandy Bank, Inc., mak

ID: 2432348 • Letter: C

Question

C O ezto.mheducation.com/hm.tpx pps ?Bookmarks 0.77 points 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 470 Total costs $ 72,850 155,100 S 227,950 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 $590 each. Calculate the contribution margin per canoe and the contribution marg calculations and final answers to 2 decimal places. Round your "percentage" answer to 2 decimal places. (ile..1234 s ?0 2 4

Explanation / Answer

1.

$72,850

$88,350

[570 x $155]

$117,800

[760 x $155]

$155,100

$155,100

2. Calculation of Contribution per Unit and Contribution margin ratio

73.73%

[$435/$590] x 100

$128,650

[830 x $155]

$155,100

a. No. of Units 470 570 760 Costs b. Variable Cost

$72,850

$88,350

[570 x $155]

$117,800

[760 x $155]

c. Fixed Cost [Will not Change] $155,100

$155,100

$155,100

d. Total Cost $227,950 $243,450 $272,900 Cost Per Unit e. Variable Cost per Unit (b/a) $155 $155 $155 f. Fixed Cost Per Unit (c/a) $330 $272.10 $204.08 Total Cost per Unit (e + f) $485 $427,10 $359.08