Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

PLEASE ANSWER IN ORDER Waterways Continuing Problem 06 (Part 1) Waterways has a sales mix of sprinklers, valves, and controllers as follows. Annual expected sales:

image text in transcribed

image text in transcribedimage text in transcribedimage text in transcribed

PLEASE ANSWER IN ORDER

Waterways Continuing Problem 06 (Part 1) Waterways has a sales mix of sprinklers, valves, and controllers as follows. Annual expected sales: Sale of sprinklers Sale of valves Sale of controllers 390,096 units at $27.00 1,430,352 units at $11.00 37,152 units at $43.00 Variable manufacturing cost per unit: Sprinklers Valves Controllers Fixed manufacturing overhead cost (total) $14.00 $8.00 $30.00 $822,000 Variable selling and administrative expenses per unit: Sprinklers $1.00 Valves $1.00 Controllers $3.00 Fixed selling and administrative expenses (total) $1,754,874 Determine the sales mix based on unit sales for each product. Sprinklers Valves Controllers Sales mix Using the annual expected sales for these products, determine the weighted average unit contribution margin for these three products. (Round answer to two decimal places, e.g. 5.25.) Weighted-Average Unit Contribution Margin LINK TO TEXT LINK TO TEXT LINK TO TEXT LINK TO TEXT Assuming the sales mix remains the same, what is the break-even point in units for these products? (Round answer to o decimal places, e.g. 2,520.) Break-even Point in Units units Click if you would like to show Work for this question: Open Show Work Waterways Continuing Problem 06 (Part 2) Waterways packages some of its products into sets for home installations. One set (small) sells for $77 with variable costs of production for the set at $50. Another set (large) sells for $151 with variable costs of $101. The parts for the $77 set take 9 machine hours to produce. The parts for the $151 set take 20 machine hours to produce. Given the information above, and assuming all of the package sets produced can be sold each month, illustrate the best use of machine hours. (Round answers to 2 decimal places, e.g. 5.25.) Small Set Large Set Contribution margin per unit of limited resource The is the best use of a limited resource. Click if you would like to Show Work for this question: Open Show Work Waterways Continuing Problem 06 a (Part 3) The section of Waterways that produces controllers for the company provided the following information. Sales in units for month of February Variable manufacturing cost per unit Sales price per unit Fixed manufacturing overhead cost (per month for controllers) Variable selling and administrative expenses per unit Fixed selling and administrative expenses (per month for controllers) 4,200 $10.00 $43.00 $83,000 $2.90 $13,250 Using this information for the controllers, determine the contribution margin ratio, the degree of operating leverage, the break-even point in dollars, and the margin of safety ratio for Waterways Corporation on this product. Contribution Margin Ratio (Round to 0 decimal places, e.g. 25%.) Degree of Operating Leverage (Round to 2 decimal places, e.g. 5.25.) Break-even Point in Dollars Margin of Safety Ratio (Round to 1 decimal place, e.g. 5.2%.)

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

More Books

Students also viewed these Accounting questions