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 696,000 units at an average unit selling price of $4.20. The variable costs were $1,900,080, and the fixed costs were $683,256. (a1) Your answer is correct. What is the product's contribution margin ratio? (Round ratio to O decimal places, e.g. 25%.) Contribution margin ratio eTextbook and Media (a2) Your answer is correct. 35 55 % do What is the company's break-even point in sales units and in sales dollars for this product? Break-even point in units Break-even point in dollars eTextbook and Media (a3) Your answer is correct. +A 464800 units 1952160 What is the margin of safety, both in dollars and as a ratio? (Round ratio to O decimal places, e.g. 25%.) Margin of safety in dollars 971040 Margin of safety ratio eTextbook and Media (a4) Your Answer Correct Answer Your answer is correct. 33 % Attempts: 1 of 3 used Attempts: 1 of 3 used Attempts: 1 of 3 used 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 eTextbook and Media Solution (a5) Your answer is correct. 23120 units Attempts: 3 of 3 used If sales increase by 51,000 units and the cost behaviors do not change, how much will income increase on this product? Income will increase by eTextbook and Media (b1) 74970 Attempts: 1 of 3 used 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 $0.70. 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 $0.20. Waterways currently sells 491,740 sprinkler units at an average unit selling price of $26.50. The manufacturing costs are $6,863,512 variable and $2,050,140 fixed. Selling and administrative costs are $2,651,657 variable and $794,950 fixed. If Waterways begins mass-producing its special-order sprinklers, how would this affect the company? (Round ratio answers to O decimal places, e.g. 5% and net income answers to 2 decimal places, e.g. 5,275.25.) Contribution margin ratio Net income +A eTextbook and Media Save for Later (b2) Current % +A New % Effect by by $ Attempts: 0 of 3 used Submit Answer The parts of this question must be completed in order. This part will be available when you complete the part above.