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Waterways Problem os 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 simple water control and time that it mass products. Last year, the company sold 721,000 units at an average selling price of $9.50 per unit. The variable costs were $1,766,450, and the fixed costs were $529,935 El your answer is correct What is the product's contribution margin ratio (Round ratio to decimal places, e.g. 254.). Contribution margin ratio 30% 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? 504700 units Break-even point in units tireak-even point in dollars 1766450 LINK TO TEXT LERE TO TEXT LNK TO TEKI your answer is correct CALCULATOR PRINTER VERSION 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 257050 Margin of safety ratio 30% LINK TO TEXY LINK TO TEXT LINK TO TEXT 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 1000 units UNK TO TEXT LINK TO TEXT LINK TO TEXT El your answer is incorrect. Try again It sales increase by 51,000 units and the cost behaviors do not change, how much will income increase on this product? Income will increase by 1050 LINK TO TEXT LINK TO TEXT LINK TO TEXT O 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 10.70 per unit. The company the estimates that this change could increase the overall number of sprinklers sold by 10%, and the werage sales Brice would increase 10.20 per unit. Waterways currently seis 480,000 sprinkler units at an average Selling price of $20.60. The manufacturing costs are 57.866,260 variable and 12,011,486 fixed. Selling and administrative costs are 57,644,240 variable and 1609,370 feed. Waterways begins mass-producing its special-order sprinklers, how would this affect the company (Round ratio to decimal places, s. 56 and Net Income to o decimal play 2,520.) Current New Effect Contribution margin ratio Decrease by Net income Incalty 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 $0.70 per unit. The company to 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 sels 490,000 sprinkler units at an average selling price of $28.60. The manufacturing costs are 57.866,260 variable and $2,011,486 fed. Selling and administrative costs are $2,644,240 variable and $809.370 fixed If the average sales price per sprinkler unit did not increase when the company began mass-producing the special-order sprinkler, what would be the effect on the company (Round answers to o decimal places, e.g. 59 or 2,820.) Contribution margin ratio Decree by Profit Dec by Click if you would like to show Work for this question: Doen Show Work

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