Reference no: EM133079142

Question - The vice-president of sales and marketing, Madison Tremblay, is trying to plan for the coming year in terms of production needs to meet the forecast sales. The board of directors is very supportive of any initiatives that will lead to increased operating income for the company in the upcoming year. Waterways markets a simple water controller and timer that it mass-produces. During 2022, the company sold 355,000units at an average selling price of $8.00 per unit. The variable costs were $1,881,500, and the fixed costs were $953,100.

1) Find the contribution margin ratio.

2) Find the break-even point in sales units.

3) Find the break-even point in sales dollars.

4) Find the margin of safety in dollars.

5) Find the margin of safety ratio.

6) Find what waterways would have to sell as additional units.

7) Find by how much income will increase.