(1) What is the product’s contribution margin ratio? (Round to nearest wholepercentage)(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? (Round to nearestwhole percentage)(4) If management wanted to increase its income from this product by 10%, howmany additional units would have to be sold to reach this income level?(5) If sales increase by 51,000 units and the cost behaviors do not change, how muchwill income increase on this product?
Pham Huong Trang1) If Waterways begins mass-producing its special-order sprinklers, how would thisaffect the company?(2) If the average sales price per sprinkler unit did not increase when the companybegan mass-producing the special-order sprinkler, what would be the effect onthe company?
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- Fall '16
- Revenue, Net Income, Pham Huong Trang
