ne 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 741,000 units at an average selling price of $4.90 per unit. The variable costs were $2,541,630, and the fixed costs were $ 762,489. Your answer is correct What is the product's contribution margin ratio? (Round ratio to o decimal places, e.g. 25%) Contribution margin ratio SHOW SOLUTION LINK TO TEXT LINK TO TEXT LINK TO TEXT 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 518700 units Wargin of safety in dollars 1089270 Margin of safety ratio SHOW SOLUTION LINK TO TEXT LINK TO TEXT LINK TO TEXT x Your answer is incorrect. Try again. 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 LINK TO TEXT LINK TO TEXT LINK TO TEXT x Your answer is incorrect. Try again. If sales increase by 57,000 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 481,000 sprinkler units at an average selling price of $25.20. The manufacturing costs are $5,811,160 variable and $2,155,660 fixed. Selling and administrative costs are $2,673,680 variable and $798,370 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 Contribution margin ratio Net income