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 738,000 units at an average selling price of $4.20 per unit. The variable costs were $1,859,760, and the fixed costs were $867,888. Your answer is correct. What is the product's contribution margin ratio? (Round ratio to 0 decimal places, e.g. 25%.) Contribution margin ratio 40% SHOW SOLUTION SHOW ANSWER LINK TO TEXT LINK TO TEXT LINK TO TEXT Your answer is correct. What is the company's break-even point in units and in dollars for this product? Break-even point in units T 516,600 units Break-even point in dollars 2,169,720 Your answer is correct. What is the margin of safety, both in dollars and as a ratio? (Round ratio to 0 decimal places, e.g. 25%.) Margin of safety in dollars 929,880 Margin of safety ratio SHOW SOLUTION SHOW ANSWER 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 units