Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please do PART 3 for this question: . WCP. Part 1 The vice-president of sales and marketing, Medion Tremblay, lating to plan for the coming

Please do PART 3 for this question:image text in transcribedimage text in transcribed

. WCP. Part 1 The vice-president of sales and marketing, Medion Tremblay, lating to plan for the coming year in terms of production needs to meet the forestales. The beard of directors is very exportne of any initiatives that will lead to increase operating income for the company in the coming seat Instructions a. Wale woulule wale walruller au Luer Laililes.ces. Dutin 2022, LE CULPA suli 350,000 nuits al au Lagelig price of $8 per uuil. The wrinkle wel weer S.,575.000.cn lle Lixo e S300,000 1. What is the product's comtribution margin ratio? 2. Val is the WILPA's brever point in sales units and in sales dues for ibis produ? What is the magn af safety, lwyth in dollard As A YATION + If management wanted to increase income from this prudus. LX.bow many aditional units would the company have to sell to reach this income level? 5 Iesles increase 71,000 wote and the cost belowe do not change how much will come increase on this product? b. Waterways is considering mass produring one of its special order screams. This would incas variable ensts for all screens by an awerage of $1.21 per unit. The company als estimates that this change could increase the overall number of screscas sold by: work, and the average sale price would in zeax by 80 25 per wil. Waterways currently sells 491.940 suree units al average selling price ut $26.50. The facturing costs are $6,861.512 variable ni $2,050,140 Lixel. Selling and administrative costs are $2.661.352 variable and $294.950 lived. 1. Waterwaye ligina mass-producing its seriol-over man, www would thin the company 2. If the average sales price per screen did not increase when the company began mass producing the screen wit would be the feel on the coup! Porta Waterways has a sales mix of sprinklers, valves, and controllers as follows: Annal expected sales: Sprinklers 150,000 wita. Valves 1.0.CICID units at $11.20 Couleullets 50,000 $1250 Variable manufacturing cost per unit: Sprinklers $13.96 Valves 7.95 Controllers Fire Lige ellull) $760,000 Variable selling and administratie exponan permit: Sprinklers $1.10 Valves 0.50 Controllers lisel eeling and clinicalive expees (lol) $1.000.000 Instructions A. Determine the sales my head on tale for each padnet. b. Using the annual expected sales for these products. determine the weighted average unit contribution margin for these three products. Round to two deramal plass.) C. Assuminis, Lees mix remans Le sue, what is the beak-even pinli il lor Lesers? 29.3.1 21:41 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) 4,000 $29.75 $42.50 $18,000 $3.41 $13,122 Instructions a. 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. b. What does this information suggest if Waterways' cost structure is the same for the company as a whole

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

Frank Woods Business Accounting Volume 1

Authors: Frank Wood, Alan Sangster

10th Edition

9780273681496

More Books

Students also viewed these Accounting questions

Question

What is lean synchronization?

Answered: 1 week ago

Question

EXPLAIN THE EVOLUTION OF ELECTRIC POWER SYSTEMS

Answered: 1 week ago

Question

6. What are some of the advantages and disadvantages of ESOPs?

Answered: 1 week ago