Waterways Problem 05 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 710,000 units $2,130,000, and the fixed costs were $994,000. an average selling price of $5.00 per unit. The variable costs were Your answer is correct. What is the product's contribution margin ratio? (Round ratie te o decla res .254. Contribution margin ratio 40% SHOW SOLUTION SHOW ANSWER LINK TO TENT LINK TO TEXT LINK TO TEXT * Your answer is incorrect. Try again down for this product? What is the company's break-even point in unit and Break-even point in units Break-even point in das L ET LINK TO TENTO TEXT Yuran incorrect. Try again HE CALCULATOR PRINTER VERSION Ex Your answer is incorrect. Try again. SHI What is the margin of safety, both in dollars and as 5 decimal places, eg. 25%) Margin of safety in dollars i Margin of safety ratio 1 % LINK TO TEXT LINK TO TEXT LINK TO TEXT x Your answer is incorrect. Try again. 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 LINK TO TEXT LINK TO TEXT LINK TO TEXT x Your answer is incorrect. Try again. If sales increase by 55.000 units and the cost behaviors do not change, how much will income increase on this broduct? Income will increase by LINK TO TEXT LINK TO TEXT LINK TO TEXT Your answer is partially correct. Try again. 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 $0.80 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 488,000 sprinkler units at an average selling price of $26.00. The manufacturing costs are $6,270,990 variable and $2,315,866 fixed. Selling and administrative costs are $2,610,610 variable and $810, 160 fixed. 14 Waterways begins mass-producing its special-order sprinklers, how would this affect the company? (found ratle too decimal placeseg. 59 and Net Income to o decimal places, .. 2,520.) Current Effect Contribution margin ratio BSS Net Income LINK TO TEXT LINK TO TEXT LINK TO TEXT Your answer is partially correct. Try again. states that t The company ,000 10.160 Waterways is thinking of mass producing one of its special-order sprinklers Todes would increase variable costs for all spiers by average of 0.0p this change could increase the overall number of sprinklers sold by on, and the average price were 0.20 perwit waterways current ng price of $26.00. The manufacturing costs are 56,270,990 vara and $2,315.866 fred. Seng and d r ive costs are 2.610 610 If the average sale price personer ut ad not create when the com began producing the perioder , what would be the decimal places, 9.5 2.520.) Contribution margin ratio Decreased by Profit Click if you would like to show Work for this questioni Open TO LIETOTT
