Waterways Continuing Problem 06 (Part 1)

Waterways has a sales mix of sprinklers, valves, and controllers as follows.

Annual expected sales:
Sale of sprinklers		444,576 units at $27.00
Sale of valves		1,333,728 units at $11.00
Sale of controllers		74,096 units at $43.00

Variable manufacturing cost per unit:
Sprinklers		$14.00
Valves		$8.00
Controllers		$30.00
Fixed manufacturing overhead cost (total)				$723,000

Variable selling and administrative expenses per unit:
Sprinklers		$1.00
Valves		$1.00
Controllers		$3.00
Fixed selling and administrative expenses (total)				$1,564,312

Determine the sales mix based on unit sales for each product.

		Sprinklers		Valves		Controllers
Sales mix		%		%		%

Using the annual expected sales for these products, determine the weighted-average unit contribution margin for these three products. (Round answer to two decimal places, e.g. 5.25.)

Weighted-Average Unit Contribution Margin

$

Assuming the sales mix remains the same, what is the break-even point in units for these products? (Round answer to 0 decimal places, e.g. 2,520.)

Break-even Point in Units

units