VERSION Pr "Waterways Problem 05 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 sio determine how the company's profits might be increased in the coming year. This problemasks 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 umple water control and time that it mass produces. Last year, the company sold 653.000 units at an average selling price of 54.60 per unit. The variable costs were $2,102,660, and the fixed costs were 5630,798 What the products contribution margin rato? (Round rotlo to o declemal poom, o.p.28%) Contribution margin ratio What is the company's break-even point in units and in dollars for this product? Break-even point in units units ar. He is Waterw rice of Break-even point in dollars What is the margin of safety, both in dollars and as a ratio (Round ratio to decimal places, 6.9.254.) Margin of safety in dollars dy Margin of safety ratio 1 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 47,000 unts 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 variable costs for all sprinklers by an average of 0.70 per unit. The company to estimates that this change could increase the overall number of sprinders sold by 10%, and the average sales price would increase $0.20 per unit. Waterways currently sells 493,000 sprinkler units at an average selling price of $25.40. The manufacturing costs are $6,147,410 variable and $2,284,405 fixed. Selling and administrative costs are $2,618,130 variable and $796, 110 foxed. It waterways begins mass producing its special-order sprinklers, how would this affect the company? (Round ratio to o decimal places, e.g. 5% and Net Income to decimal places, .g. 2,520.) Current New Wys Continuing em oz (Part 1 Continuing om 07 (Part 2) y Continuing Contribution margin ratio Effect 1 by Sicore Results by Study Net Income 1 by Waterway is thinking of mauproducing one of its specal-order sprinklers to do so would increase variable costs for all sprinklers by an werage of 10.70 per unit. The company also estimates that this change could increase the overall number of sprinklers sold by 10%, and the average sale price would increase $0.50 per unit Waterways currently is 403,000 sprinderitaan average selling price of $25.40. The manufacturing costs are 56,147,410 variable and 12,204,405. Selling and administrative costs are 62.618,130 varied $79.110 fixed If the average sales price per sprinkler unit did not increase when the company bergan ma-producing the special-order sprinkle, what would be the effect on the company found answers to decimal places 4 ar 2,570) Contribution margin ratio by Profit Question Attempts Unlimited