Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

If sales increase by 5 6 , 0 0 0 units and the cost behaviors do not change, how much will income increase on this

If sales increase by 56,000 units and the cost behaviors do not change, how much will
income increase on this product?
Income will increase by
Waterways is thinking of mass-producing one of its special-order sprinklers. To do so
would increase variable costs for all sprinklers by an average of $0.70 per unit. The
company also estimates that 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 490,000 sprinkler units at an average selling price of $24.40. The
manufacturing costs are $5,760,440 variable and $2,101,930 fixed. Selling and
administrative costs are $2,608,760 variable and $806,080 fixed.
If Waterways begins mass-producing its special-order sprinklers, how would this affect
the company? (Round ratio to 0 decimal places, e.g.5% and Net Income to 0
decimal places, e.g.2,520.)
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Edp Auditing A Functional Approach

Authors: Albert J. Harnois

1st Edition

0132246848, 978-0132246842

More Books

Students also viewed these Accounting questions

Question

Establish identity. tan + cot = sec csc

Answered: 1 week ago

Question

Describe how we perceive depth in three-dimensional space.

Answered: 1 week ago

Question

why we face Listening Challenges?

Answered: 1 week ago

Question

what is Listening in Context?

Answered: 1 week ago