Vice President for Sales and Marketing at Waterways Corporation is planning for production needs to meet sales demand in the 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 $

Margin of safety ratio

$\%$

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Attempts: unlimited

$($a$4)$

Your answer is correct.

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

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Assistance Used

Attempts: unlimited V Your answer is correct.

If sales increase by $56,000$ units and the cost behaviors do not change, how much will income increase on this product?

Income will increase by $

eTextbook and Media

Attempts: unlimited

$($b$1)$

V Your answer is correct.

Waterways is thinking of mass$-$producing one of its special$-$order sprinklers. To do so would increase unit variable costs for all

sprinklers by an average of $$0\mathrm{.}70.$ The company also estimates that this change could increase the overall number of sprinklers

sold by $10\%,$ and the average unit sales price would increase $$0\mathrm{.}20.$ Waterways currently sells $490,000$ sprinkler units at an

average unit selling price of $$24\mathrm{.}40.$ The manufacturing costs are $$5,760,440$ variable and $$2,101,930$ fixed. Selling and

administrative costs are $$2,608,760$ variable and $$806,080$ fixed.

If Waterways begins mass$-$producing its special$-$order sprinklers, how would this affect the company? $($Round ratio answers to $0$

decimal places, e$.$g$.5\%$ and net income answers to $2$ decimal places, e$.$g$.5,275\mathrm{.}25.)$ V Your answer is correct.

If sales increase by $56,000$ units and the cost behaviors do not change, how much will income increase on this product?

Income will increase by

$

eTextbook and Media

$($b$1)$

Your answer is correct.

Waterways is thinking of mass$-$producing one of its special$-$order sprinklers. To do so would increase unit variable costs for all

sprinklers by an average of $$0\mathrm{.}70.$ The company also estimates that this change could increase the overall number of sprinklers

sold by $10\%,$ and the average unit sales price would increase $$0\mathrm{.}20.$ Waterways currently sells $490,000$ sprinkler units at an

average unit selling price of $$24\mathrm{.}40.$ The manufacturing costs are $$5,760,440$ variable and $$2,101,930$ fixed. Selling and

administrative costs are $$2,608,760$ variable and $$806,080$ fixed.

If Waterways begins mass$-$producing its special$-$order sprinklers, how would this affect the company? $($Round ratio answers to $0$

decimal places, e$.$g$.5\%$ and net income answers to $2$ decimal places, e$.$g$.5,275\mathrm{.}25.)$Waterways is thinking of mass$-$producing one of its special$-$order sprinklers. To do so would increase unit variable costs for all

sprinklers by an average of $$0\mathrm{.}70.$ The company also estimates that this change could increase the overall number of sprinklers

sold by $10\%,$ and the average unit sales price would increase $$0\mathrm{.}20.$ Waterways currently sells $490,000$ sprinkler units at an

average unit selling price of $$24\mathrm{.}40.$ The manufacturing c

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 $635,000$ units at an average

unit selling price of $$5\mathrm{.}00.$ The variable costs were $$2,222,500,$ and the fixed costs were $$619,125.$

$($a$1)$

V Your answer is correct.

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

Contribution margin ratio

$\%$

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Attempts: unlimited

$(a2)$

$$ Your answer is correct.

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