Calculating Contribution Margin and Contribution Margin Ratio; Identifying Break-Even Point, Target Profit Paddle Away, Inc., makes one model of wooden canoe. Partial information for it follows....

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

Required:

1. Complete the preceding table.

2. Suppose Paddle Away sells its canoes for $550 each. Calculate the contribution margin per canoe and the contribution margin ratio.

3. This year Paddle Away expects to sell 820 canoes. Prepare a contribution margin income statement for the company.

4. Calculate Paddle Away’s break-even point in units and in sales dollars.

5. Suppose Paddle Away wants to earn $75,000 profit this year. Calculate the number of canoes that must be sold to achieve this target.