In: Accounting
Capital Manufacturer, Inc. makes one model of wooden canoes. | ||||
Partial information for it follows: | ||||
1) Complete the following table. | ||||
Number of canoes produced and sold: | 500 | 700 | 850 | |
Total Costs: | ||||
Variable Costs | 77,000 | |||
Fixed Costs | 180,000 | |||
Total Costs: | ||||
Cost per canoe: | ||||
Variable Cost per canoe | ||||
Fixed cost per canoe | ||||
Total Cost per canoe | ||||
2) Suppose Capital sells its canoes for $600 each. | ||||
Calculate the contribution margin per canoe and | ||||
the contribution margin ratio | ||||
3) This year Capital expects to sell 900 canoes. | ||||
Prepare a contribution margin income statement for the company. | ||||
4) Calculate Capital Manufacturer's break-even point in units and in sales $$$. | ||||
5) Suppose Capital Manufacturer wants to earn $82,000 profit this year. | ||||
Calculate the number of canoes that must be sold to achieve this target. | ||||