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BACK ugh nting Waterways Continuing Problem (This is a continuation of the Waterways Problem from Chapters 1 through 4.) WCPS Vice President for Sales and
BACK ugh nting Waterways Continuing Problem (This is a continuation of the Waterways Problem from Chapters 1 through 4.) WCPS Vice President for Sales and Marketing Sam Totter is trying to plan for the com- ing year in terms of production needs to meet the sales demand. He is also trying to deter- ces mine ways in which the company's profits might be increased in the coming year Instructions (a) Waterways markets a simple water control and timer that it mass-produces. During ews 2016, the company sold 696,000 units at an average selling price of per solution $4.20 per unit. The variable expenses were $1,900,080, and the fixed expenses were $683,256. (1) What is the products contribution margin ratio? (Round to nearest whole ter 1 es percentage) (2) What is the company's break-even point in units and in dollars for this product? (3) What is the margin of safety, both in dollars and as a ratio? (Round to nearest (4) If management wanted to increase its income from this product by 10%, how (5) If sales increase by 51,000 units and the cost behaviors do not change, how much whole percentage many additional units would have to be sold to reach this income level? will income increase on this product? deos ties
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