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 $710,000$ units

at an average unit selling price of $$5\mathrm{.}00.$ The variable costs were $$2,130,000,$ and the fixed costs were $$994,000.$

$($a$1)$

Your answer is correct.

What is the product's contribution margin ratio? $($Round ratio to $0$ decimal places, e$.$g$.25\%.)$

Contribution margin ratio

$\%$

eTextbook and Media

Attempts: $1$ of $3$ used

$($a$2)$

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 $