View History Bookmarks Window Help watch View Policies Current Attempt in Progress 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 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 630,000 units at an average selling price of $4.40 per unit. The variable costs were $1.663,200, and the foed costs were $742,896. What is the product's contribution margin ratio? (Round ratio to 0 decimal places, es. 25%) Contribution margin ratio Question Part Score What is the company's break-even point in units and in dollars for this product? units Break-even point in units Break-even point in dollars $ Question Part Score What is the margin of safety, both in dollars and as a ratio (Round ratio to decimal places, s. 25%.) Margin of safety in dollars $ Margin of safety ratio OLG Et View History Bookmarks Window Help structure.com Question Part Score What is the margin of safety, both in dollars and as a ratio? (Round ratio to 0 decimal places, e.3. 25%) Margin of safety in dollars 5 Margin of safety ratio Question Part Score 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 Question Part Score of sales increase by 46,000 units and the cost behaviors do not change, how much will income increase on this product? Income will increase by $ Question Part Score 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 also estimates that this change could increase the overall number of sprinklers sold by 10%, and the average sales price would increase $0.20 per unit. Waterways currently sells 501.000 sprinkler units at an average selling price of $25.60. The manufacturing costs are $6.993.400 variable and $1.729 325 fed Selling and administrative costs are 5242 1 13 LG w History Bookmarks Window Help wwmil instructure.com 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 also estimates that this change could increase the overall number of sprinklers sold by 10%, and the average sales price would increase $0.20 per unit, Waterways currently sells 501.000 sprinkler units at an average selling price of $25.60. The manufacturing costs are $6,993,400 variable and $1,729,325 fixed. Selling and administrative costs are $2.625,800 variable and $801,130 fixed. If Waterways begins mass-producing its special-order sprinklers, how would this affect the company? (Round ratio to 0 decimal places, e.. 5% and Net income to o decimal places, e.s. 2,520.) Current New Contribution margin ratio % Effect by Net income $ . by $ Question Part Score --/32 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 also estimates that this change could increase the overall number of sprinklers sold by 10%, and the average sales price would increase $0.20 per unit. Waterways currently sells 501.000 sprinkler units at an average selling price of $25.60. The manufacturing costs are $6.993,400 variable and $1,729,325 fixed. Selling and administrative costs are $2.625,800 variable and $801,130 foed. If the average sales price per sprinkler unit did not increase when the company began mass-producing the special order sprinkler, what would be the effect on the company? (Round answers to 0 decimal places, e.8.5% or 2,520.) Contribution margin ratio . by by s Profit Question Part Score --/10 LG