Vice President for Sales and Marketing at Waterways Corporation is planning for production needs to...
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Accounting
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 696,000 units at an average unit selling price of $4.20. The variable costs were $1,900,080, and the fixed costs were $683,256. If 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 eTextbook and Media Assistance Use
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