Wterways markets a simple water control and timer that it

Reference no: EM13598589

Waterways markets a simple water control and timer that it mass-produces. During the year, the company sold 696,000 units at an average selling price of $4.22 per unit. The variable expenses were $2,053,200, and the fixed expenses were $683,338.

(1) What is the product's contribution margin ratio?
(2) What is the company's break-even point in units and in dollars for this product?
(3) What is the margin of safety, both in dollars and as a ratio?
(4) 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?
(5) If sales increase by 71,090 units and the cost behaviors do not change, how much will income increase on this product?

Reference no: EM13598589

Questions Cloud

Assuming that 80 of all the june receivables are collected : lonergran company occasionally uses its accounts receivable to obtain immediate cash. at the end of june 2011 the

Prepare the companys cash budget for february in good form : payment inc. is preparing its cash budget for february. the budgeted beginning cash balance is 23000. budgeted cash

Capitalization vs expense rentals r us incurs the following : capitalization vs. expense. rentals r us incurs the following expenditures on an apartment building it ownsitem

Equipment with an appraisal value of 35 000 is offered for : equipment with an appraisal value of 35 000 is offered for sale on 32 00. the purchaser acquires it for 10000 in cash

Wterways markets a simple water control and timer that it : waterways markets a simple water control and timer that it mass-produces. during the year the company sold 696000 units

Sumber jaya imports and sells fasteners bolts and nuts to : sumber jaya imports and sells fasteners bolts and nuts to its customer in all over indonesia. it is a privately owned

Paid 20515 cash plus 1785 in sales tax for a new delivery : chen company completed the following transactions and events involving its delivery trucks. 2010 jan. 1 paid 20515

The fixed manufacturing overhead is comprised of : gargoyle corporation manufactures 20000 widgets each period. the widget is used as an input for producing several other

Aj corporation a manufacturer of ethnic foods contracted : aj corporation a manufacturer of ethnic foods contracted in 2010 to purchase 500 pounds of a spice mixture at 5.00 per

User Account

All Pages