Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Waterways has a sales mix of sprinklers, valves, and controllers as follows. Annual expected sales: Sale of sprinklers 456,343 units at $26.00 Sale of valves

image text in transcribed
image text in transcribed
image text in transcribed
Waterways has a sales mix of sprinklers, valves, and controllers as follows. Annual expected sales: Sale of sprinklers 456,343 units at $26.00 Sale of valves 1,468,234 units at $11.00 Sale of controllers 59,523 units at $42.00 Variable manufacturing cost per unit: Sprinklers $14.00 Valves $8.00 Controllers $30.00 $721,000 Fixed manufacturing overhead cost (total) Variable selling and administrative expenses per unit: Sprinklers $1.00 Valves $1.00 Controllers $3.00 Fixed selling and administrative expenses (total) $1.559,384 Determine the sales mix based on unit sales for each product. Valves Controllers Sprinklers 96 % 96 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, eg. 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 decimal places, eg. 2,520.) Break-even Point in Units units

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Systems Direct Auditing Practice Case IBM Book Workbook And 5.25 Disk

Authors: Dieter Weiss, Gaylord N. Smith

1st Edition

0538809051, 978-0538809054

More Books

Students also viewed these Accounting questions