Mercer University Operations And Supply Chain Management Assignment Help - Paddle Away, Inc.,

Question - Paddle Away, Inc., makes one model of wooden canoe. Partial information for it follows.


Number of canoes produced and sold------490
Total costs
Variable costs ------$73,500
Fixed costs---------159,740

Total costs------------$233,240

Cost per unit
Variable cost per unit------------$150.00
Fixed cost per unit---------------$326.00

Total cost per unit----------------$476.00


1: Suppose that Paddle Away raises its selling price to $710 per canoe. Calculate its new break-even
point in units and in sales dollars. (Round your break-even units answer to the next whole number.
Round your sales answer to the nearest whole number. Omit the "$" sign in your response.)

New break-even units :______ canoes
Break-even sales: $_ ...Read More _____

2: If Paddle Away sells 690 canoes, compute its margin of safety in dollars and as a percentage of
sales. (Use the new sales price of $710.) (Round margin of safety to the nearest whole number.
Round percentage of sales to 2 decimal places. Omit the "$" & "%" signs in your response.)

Margin of safety: $______
Percentage of sales:______%

3: Calculate the number of canoes that Paddle Away must sell at $710 each to generate $116,000
profit. (Round your answer to the next whole number.)

Target sales units:______ canoes ...Read Less

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