Waterways Continuing Problem (This is a continuation of the Waterways Problem from Chapters 14 through...
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Waterways Continuing Problem (This is a continuation of the Waterways Problem from Chapters 14 through 18.) WCP19 Part 1 Waterways has a sales mix of sprinklers, valves, and controllers as follows Annual expected sales: Sale of sprinklers Sale of valves Sale of controllers 460,000 units at $26.50 1,480,000 units at $11.20 60,000 units at $42.50 Variable manufacturing cost per unit Sprinklers Valves Controllers $13.96 S 7.95 $29.75 Fixed manufacturing overhead cost (total) $760,000 Variable selling and administrative expenses per unit Sprinklers Valves Controllers $1.30 $0.50 $3.41 Fixed selling and administrative expenses (total) $1,600,000 Instructions (a) Determine the sales mix based on unit sales for each product (b) Using the annual expected sales for these products, determine the weighted-average unit contribution margin for these three products. (Round to two decimal places.) (c) Assuming the sales mik remains the same, what is the break-even point in units for these products? Part 3 The section of Waterways that produces controllers for the company provided the following information. Sales for month of February 4,000 Variable manufacturing cost per unit: $9.75 Sales price per unit: $42.50 Fixed manufacturing overhead cost (per month for controllers): $81,000 Variable selling and administrative expenses per unit: $3.00 Fixed selling and administrative expenses (per month for controllers): $13,122 Instructions (a) Using this information for the controllers, determine the contribution margin ratio, the degree of operating leverage, the break-even point in dollars, and the margin of safety ratio for Waterways Corporation on this product
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