Just need part B1
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 company's 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 699,000 units at an average selling price of $3,80 per unit. The variable costs were $1,859,340, and the fixed costs were $557.802 1a1 Your answer is correct What is the product's contribution margin ratio? (Round ratio lo decimal places, eg 25%. Contribution margin ratio Attempts: 1 of 3 used {a21 Your answer is correct. What is the company's break-even point in units and in dollars for this product? Break-even point in units Break even point in dollars $ 489300 units 1859340 Attempts: 2 of 3 used (a3) Your answer is correct. What is the margin of safety, both in dollars and as a ratio? Round ratio to decimal places, c.8.25%. Margin of safety in dallars $ Margin of safety ratio 796860 30 % Attempts: 1 of 3 used * Your answer is incorrect If management wanted to increase its income from this product by 10%, how many additional units would have to be sold to reach this income level? Waterways would have to sell an additional 69900 units Attempts: 3 of 3 used fa51 Your answer is correct. It sales increase by 50.000 units and the cost behaviors do not change, how much will income Increase on this product? Income will increase by $ 57000 Attempts: 3 of 3 used b1) 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 501,000 sprinkler units at an average selling price of $28.60. The manufacturing costs are $8,831,600 variable and $1,395,533 fred. Selling and administrative costs are $2,631.280 variable and $787.310 foved. If Waterways begins mass-praducing its special-order sprinklers, how would this affect the campany? Round ratio to decimal places eg.5% and Net income to decimal places, eg 2,520.) Current New Contribution margin ratio Net income Effect % Decrease by Increase by $ $ $ Save for Later Attempts:0 of 3 used Submit
