please help with b1
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 501d657,000 units at an average unit selling price of $4,40. The variable costs were $1,734,480, and the fixed costs were $809,424. (a1) What is the product's contribution margin ratio? (Round ratio to 0 decimal ploces es 25\%J) What is the company's break-even point in sales units and in sales dollars for this product? Break-even point in units units Break-even point in dollars Your answer is correct. What is the margin of safety, both in dollars and as a ratio? (Round ratio to 0 decimal ploces, e.g. 25\%) Margin of safety in dollars $ Margin of safety ratio % 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. units If sales increase by 52,000 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 unit variable costs for all sprinklers by an average of $0,70. The company also estimates that this change could increase the overall number of sprinklers sold by 10%, and the average unit sales price would increase 50.20 . Waterways currently selis 493.000 sprinkler units at an average unit selling price of $26.20. The manufacturing costs are $7,004,760 variable and $1,754,947 fixed, 5eliing and administrative costs are $2,682,690 variable and $802,950 fixed. If Waterways begins mass-producing its special-order sprinklers, how would this affect the company? (Round ratio onswers to 0 decimal ploces, e.8. 5% and net income answers to 2 decimal places, e. . 5,275.25