Question
Note: do not key into the shaded area, those are done for you. Some areas will update automatically as you fill out the problem *Determine
Note: do not key into the shaded area, those are done for you. Some areas will update automatically as you fill out the problem *Determine the sales mix based on unit sales for each product. *Using the annual expected sales for these products determine the weighted average unit contribution margin for these three products ( round to two decimal places). | |||||||||
Part 1 | |||||||||
(a) | Total Units | ||||||||
Item | Units | ||||||||
Sprinklers | 460,000 | ||||||||
Valves | 1,480,000 | ||||||||
Controllers | 60,000 | ||||||||
Total Units | 2,000000 | ||||||||
Sales Mix % | |||||||||
Item | Percentage | ||||||||
Sprinklers | |||||||||
Valves | |||||||||
Controllers | |||||||||
(b) | Per Unit | ||||||||
Sprinklers | Valves | Controllers | |||||||
Sales price | |||||||||
Variable costs: | |||||||||
Manufacturing | |||||||||
Selling & admin. | |||||||||
Total variable costs | |||||||||
Contribution margin | |||||||||
Weighted-Average Unit Contribution Margin | |||||||||
Weighted-Avg | |||||||||
Unit CM X | Sales Mix % = | Unit CM | |||||||
Sprinklers | - | 0% | |||||||
Valves | - | 0% | |||||||
Controllers | - | 0% | |||||||
Total |
Question: Waterways has a sales mix of sprinklers, valves, and controllers as follows. Annual expected s...
Waterways has a sales mix of sprinklers, valves, and controllers as follows.
Annual expected sales: | ||
Sale of sprinklers | 460,000 units at $26.50 | |
Sale of valves | 1,480,000 units at $11.20 | |
Sale of controllers | 60,000 units at $42.50 |
Variable manufacturing cost per unit | ||||
Sprinklers | $13.96 | |||
Valves | $7.95 | |||
Controllers | $29.75 | |||
Fixed manufacturing overhead cost (total) | $760,000 |
Variable selling and administrative expenses per unit: | ||||
Sprinklers | $1.30 | |||
Valves | $0.50 | |||
Controllers | $3.41 | |||
Fixed selling and administrative expenses (total) | $1,600,000 |
Determine the sales mix based on unit sales for each product. (Round answers to 0 decimal places, e.g. 25%.)
Sprinklers %
Valves %
Controllers %
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