Question
Vice President for Sales and Marketing Sam Totter is trying to plan for the coming year in terms of production needs to meet the sales
Vice President for Sales and Marketing Sam Totter is trying to plan for the coming year in terms of production needs to meet the sales demand. He is also trying to determine ways in which the companys profits might be increased in the coming year. Waterways markets a simple water control and timer that it mass-produces. During 2016, the company sold 696,000 units at an average selling price of per solution $4.20 per unit. The variable expenses were $1,900,080, and the fixed expenses were $683,256.
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und ratio to o decimal places, e.g ratio to o decimal places, e.g. 25%) Contribution margin ratio 35 What is the company's break-even point in units and in dollars for this product? Break-even point in units Break-even point in dollars 464800 units 1952160 what is the margin of safety, both in dollars and as a ratio? (Round ratio to 0 decimal places, eg, 25%.) Margin of safety in dollarss Margin of safety ratio 971040 33 % If management wanted to increase its income from this product by 10%, how many additional units would have tobe sold to reach ths income level? Waterways would have to sell an additional 23125 unitsStep by Step Solution
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