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 companys 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 720,000 units at an average selling price of $4.70 per unit. The variable costs were $2,030,400, and the fixed costs were $879,840. (a1) Correct answer icon Your answer is correct. What is the products contribution margin ratio? (Round ratio to 0 decimal places, e.g. 25%.) Contribution margin ratio 40 % eTextbook and Media Attempts: unlimited (a2) Correct answer icon Your answer is correct. What is the companys break-even point in units and in dollars for this product? Break-even point in units 468000 units Break-even point in dollars $ 2199600 eTextbook and Media Attempts: unlimited (a3) Correct answer icon Your answer is correct. 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 $ 1184400 Margin of safety ratio 35 % eTextbook and Media Attempts: unlimited (a4) 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