Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The vice-president of sales and marketing, Madison Tremblay, is trying to plan for the coming year in terms of production needs to meet the forecast

image text in transcribed
image text in transcribed
image text in transcribed
The vice-president of sales and marketing, Madison Tremblay, is trying to plan for the coming year in terms of production needs to meet the forecast sales. The board of directors is very supportive of any initiatives that will lead to increased operating income for the company in the upcoming year. Waterways markets a simple water controller and timer that it mass-produces. During 2022, the company sold 370,000 units at an average selling price of $8.00 per unit. The variable costs were $1,850,000, and the fixed costs were $927,000. What is the product's contribu maroin ratin/Dandan --AAPA If management wanted to increase income from this product by 10%, how many additional units would the company liave to sell to reach this income level? (Round answer to Odecimal places, eg. 5,275.) Waterways would have to sell an additional units If sales increase by 82.000 units and the cost behaviours do not change how much will income increase on this product? Income will increase by s Waterways is considering mass-producing one of its special-order screens. This would increase variable costs for all screens by an average of $0.82 per unit. The company also estimates that this change could increase the overall number of screens sold by 10%, and the average sales price would increase by $0.29 per unit. Waterways currently sells 570,000 screen units at an average selling price of $28.00. The manufacturing costs are $7,962,000 variable and $2,378,160 fixed. Selling and administrative costs are $3,096,000 variable and $922 140 fixed. If Waterways begins mass-producing its special-order screens, how would this affect the company? (Round contribution margin ratio to 1 decimal place, e.g. 15.2% and operating income to O decimal places, eg. 5,275.) Current New Contribution margin ratio 96 96 by Operating income $ $ by If the average sales price per screen did not increase when the company began mass-producing the screen, what would be the effect on the company? (Round change in contribution margin ratio to 1 decimal place, eg. 15.2% and change in profit to decimal places, e.g. 5,275.) %. Contribution margin ratio will by Profit will by $

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_2

Step: 3

blur-text-image_3

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

Accounting And Finance For Non Specialists

Authors: Eddie McLaney

9th Edition

1292062711, 9781292062716

More Books

Students also viewed these Accounting questions