Question
I need help with this question. Please make sure to type the answer in the exact form that I shared. Not hand written.It's all just
I need help with this question. Please make sure to type the answer in the exact form that I shared. Not hand written.It's all just one question. I'll make sure to rate the work. Thank you so much.
The Vice President for Sales and Marketing at Waterways Corporation is planning for production needs to meet sales demand in the coming year. He is also trying to determine how the companys profits might be increased in the coming year. This problem asks you to use cost-volume-profit concepts to help Waterways understand contribution margins of some of its products and decide whether to mass-produce any of them. Waterways markets a simple water control and timer that it mass-produces. Last year, the company sold 657,000 units at an average selling price of $4.40 per unit. The variable costs were $1,734,480, and the fixed costs were $809,424.
Waterways is thinking of mass-producing one of its special-order sprinkders. To do so would increase variable costs for all sprinkders by an average of $0.70 per unit. The company also estimates that this change could increase the overall number of spnnklers sold by 10%, and the average sales price would increase S0.20 per unit, waterways currently sells 493,000 sprinkler units at an average selling price of $26.20. The manufacturing costs are $7,004,760 variable and $1,754,947 fixed. Selling and administrative costs are $2,682,690 variable and $802,950 fixed. If Waterways begins mass-producing its special-order sprinklers, how would this affect the company? (Round ratio to O decimal places, e.g. 5% and Net income to O decimal places, e.g. 2,520.) Effect by Boy Current New Contnbution margin ratio Net income LINK TO TEXT LINK TO TEXT LINK TO TEXT waterways is hinking o mass-producing one of s special Order spnn ers. To do so wou d increase vanable costs oral spnn ders by an average of 70 unit. The company aso estimate, at this change could increase the overall number of sprinklers sold by 10%, and the average sales price would increase $0.20 per unit. waterways currently sells 493,000 sprinkler units at an average selling price of $26.20. The manufacturing costs are $7,004,760 variable and $1,754,947 fixed. Selling and administrative costs are $2,682,690 variable and $802,950 fixed If the average sales price per sprinkler unit did not increase when the company began mass-producing the special-order sprinkler, what would be the effect on the company? (Round answers to 0 decimal places, e.g. 596 or 2,520.) Contribution margin ratio by Profit by Click if you would like to Show Work for this question: Qpen Show WorkStep by Step Solution
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