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Waterways has a sales mix of sprinklers, valves, and controllers as follows. Waterways Continuing Problem 06 (Part 2) Waterways packages some of its products into
Waterways has a sales mix of sprinklers, valves, and controllers as follows.
Waterways Continuing Problem 06 (Part 2) Waterways packages some of its products into sets for home installations. One set (small) sells for $75 with variable costs of production for the set at $51. Another set (large) sells for $150 with variable costs of $100. The parts for the $75 set take 8 machine hours to produce. The parts for the $150 set take 20 machine hours to produce. Given the information above, and assuming all of the package sets produced can be sold each month, illustrate the best use of machine hours. (Round answers to 2 decimal places, e.g. 5.25.) Small Set Large Set Contribution margin per unit of limited resource The is the best use of a limited resource. Click if you would like to show Work for this question: Open Show Work Waterways Continuing Problem 06 a (Part 3) The section of Waterways that produces controllers for the company provided the following information. Sales in units for month of February Variable manufacturing cost per unit Sales price per unit Fixed manufacturing overhead cost (per month for controllers) Variable selling and administrative expenses per unit Fixed selling and administrative expenses (per month for controllers) 3,800 $10.00 $45.00 $82,000 $3.50 $14,320 Using this information for the controllers, determine the contribution margin ratio, the degree of operating leverage, the break-even point in dollars, and the margin of safety ratio for Waterways Corporation on this product. Contribution Margin Ratio (Round to 0 decimal places, e.g. 25%.) Degree of Operating Leverage (Round to 2 decimal places, e.g. 5.25.) Break-even Point in Dollars Margin of Safety Ratio (Round to 1 decimal place, e.g. 5.2%.) Click if you would like to Show Work for this question: Open Show WorkStep by Step Solution
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