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 635,000 units at an average unit selling price of $3.70. The variable costs were $1,409,700, and the fixed costs were $639,064.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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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 635,000 units at an average
unit selling price of $3.70. The variable costs were $1,409,700, and the fixed costs were $639,064.
Transcribed Image Text: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 635,000 units at an average unit selling price of $3.70. The variable costs were $1,409,700, and the fixed costs were $639,064.
(a4)
X Your answer is incorrect.
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
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Transcribed Image Text:(a4) X Your answer is incorrect. 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 eTextbook and Media Save for Later 223,520 units Attempts: unlimited Submit Answer
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