Question 1 The 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 755,000 units at an average selling price of $5.00 per unit. The variable costs were $2,265,000, and the fixed costs were s 1,026,800. what is the product's contribution margin ratio? (Round ratio to 0 decimal places, e.g. 25%.) Contribution margin ratio What is the compaiy's break-even point in units and in dollars for this product? Break-even point in units Break-even point in dollars units 51 what is the margin of safety, both in dollars and as a ratio? (Round ratio to 0 decimal places, e.g. 25%.) Margin of safety in dollars Margin of safety ratio If management wanted to increase its income rrom this product by 10%, how many additional units would have to be 120 sold to reach this income level? Waterways would have to sell an additional 24160 units If sales increase by 53,000 units and the cost behaviors do not change, how much will income increase on this product? Inicome will incease by