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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 $$4\mathrm{.}20.$ The variable costs were $$1,900,080,$ and the fixed costs were $$683,256.$

$($a$1)$

What is the product's contribution margin ratio? $($Round ratio to $0$ decimal places, e$.$g$.25\%.)$

Contribution margin ratio

$($a$2)$

What is the company's break$-$even point in sales units and in sales dollars for this product?

Break$-$even point in units

Break$-$even point in dollars $

$($a$3)$

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 $

Margin of safety ratio

$\%$

$($a$4)$

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?

Waterways would have to sell an additional $,23120$ units

$(a5)$

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 $

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