1.3

The vice-president of sales and marketing, Madison Tremblay, is trying to plan for the coming year in terms of production needs to meet the forecast sales. The board of directors is very supportive of any initiatives that will lead to increased operating income for the company in the upcoming year. Waterways markets a simple water controller and timer that it mass-produces. During 2022, the company sold 375,000 units at an average selling price of $8.00 per unit. The variable costs were $1.875,000, and the fixed costs were $960,000, If management wanted to increase income from this product by 10%, how many additional units would the company have to sell to reach this income level? (Round answer to decimal places, es 5275) Waterways would have to sell an additional units of sales increase by 85.000 units and the cost behaviours do not change, how much will income increase on this product? Income will increase by $