E6-5 (Algo) Calculating Contribution Margin and Contribution Margin Ratio; Identifying Break-EvenPoint, Target Profit [LO 6-1, 6-2]Sandy Bank, Incorporated, makes one model of wooden canoe. Partial information is given below.Required:1. Complete the following table.2. Suppose Sandy Bank sells its canoes for $560 each. Calculate the contribution margin per canoe and the contribution margin ratio.3. This year Sandy Bank expects to sell 760 canoes for $560 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 $560 each.5. Suppose Sandy Bank wants to earn $72,000 profit this year. Calculate the number of canoes that must be sold to achieve thistarget. Sandy Bank sells its canoes for $560 each.Complete this question by entering your answers in the tabs below.Required 1Required 2Required 3 Required 4Required 5Complete the following table.Note: Round your "Cost per Unit" answers to 2 decimal places.Number of Canoes Produced and Sold500600780Total costsVariable CostsFixed CostsTotal CostsCost per UnitVariable Cost per UnitFixed Cost per UnitTotal Cost per Unit$77,500169,500$247,000 $0 S0S0.00 $0.00 S0.00

The break-even point refers to the point where there is no profit or loss. In other words at this…

Answered: Sandy Bank, Incorporated, makes one…

Principles of Accounting Volume 2

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Chapter3: Cost-volume-profit Analysis

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Problem 7EB: Delta Co. sells a product for $150 per unit. The variable cost per unit is $90 and fixed costs are...

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The XYZ Company earns an after tax profit of P2,400 on sales of P88,000. The average tax rate of the company is 25%. The only product in this operation sells for P20 of which P15 is in variable cost. You were asked to analyze the breakeven point of this project and its sensitivity to changes in cost levels and product price. The monthly fixed cost in this operation is:
Sandy Bank, Inc., makes one model of wooden canoe. Partial information is given below. Required: 1. Complete the following table. 2. Suppose Sandy Bank sells its canoes for $590 each. Calculate the contribution margin per canoe and the contribution margin ratio. 3. This year Sandy Bank expects to sell 770 canoes. Prepare a contribution margin income statement for the company. 4. Calculate Sandy Bank’s break-even point in units and in sales dollars. 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. Sandy Bank, Inc., makes one model of wooden canoe. Partial information is given below. Required: 1. Complete the following table. 2. Suppose Sandy Bank sells its canoes for $590 each. Calculate the contribution margin per canoe and the contribution margin ratio. 3. This year Sandy Bank expects to sell 770 canoes. Prepare a contribution margin income statement for the company. 4. Calculate Sandy Bank’s…
Nytre Limited sells executive office chairs for a price of $195 each. The contribution margin ratio of the chairs is 60% and the company’s fixed costs for this year are expected to be $80,000. The company has a profit target this year of $85,000 and is considering an improved design which is expected to increase sales. Question 14: If the company decides to use the improved design, direct labour costs will increase by $10 per chair. How many chairs must the company now sell to reach its profit target, given the increased labour costs?
Delta Co. sells a product for $150 per unit. The variable cost per unit is $90 and fixed costs are $15,250. Delta Co.s tax rate is 36% and the company wants to earn $44,000 after taxes. What would be Deltas desired pre-tax income? What would be break-even point in units to reach the income goal of $44,000 after taxes? What would be break-even point in sales dollars to reach the income goal of $44000 after taxes? Create a contribution margin income statement to show that the break-even point calculated in B, generates the desired after-tax income.
Anderson Inc. uses packing machines to prepare their product for shipping. One machine costs $136,000 and lasts about 5 years before it needs to be replaced. The operating cost per machine is $6,500 a year. Ignoring taxes, what is the equivalent annual cost of one packing machine if the required rate of return is 11%? Multiple Choice $49,904 $51,036 $44,298 $43,298 $50,776
Nytre Limited sells executive office chairs for a price of $195 each. The contribution margin ratio of the chairs is 60% and the company’s fixed costs for this year are expected to be $80,000. The company has a profit target this year of $85,000 and is considering an improved design which is expected to increase sales. Question 13: How many chairs must the company sell to reach its profit target?
Bruell Electronics Co. is developing a new product, surge protectors for high-voltage electrical flows. The cost information below relates to the product: Unit Costs Direct materials P 3.25 Direct labor 4.00 Distribution 0.75 The company will also be absorbing P120,000 of additional fixed costs associated with this new product. A corporate fixed charge of P20,000 currently absorbed by other products will be allocated to this new product. Bruell is subject to a tax rate of 30%. How many surge protectors (rounded to the nearest hundred) must Bruell Electronics sell at a selling price of P14 per unit to gain P30,000 additional income after taxes?
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Choose the correct letter of answer Sela Company, sells Product R for P5 per unit. The fixed costs are P200,000, and the variable costs are 45% of the selling price. The sales in pesos required for Canary to realize a net profit of 12% of sales is: *a. P209,302b. P 55,814c. P465,116 d. none of the above
The joint costs is P85,000. NUBD currently sells both products at the split-off point. If NUBD makes decision which maximizes profit, its profit will increase by

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