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Part 4 (Chapter 22) Vice President for Sales and Marketing Sam Totter is trying to plan for the coming year in terms of production needs to meet the sales demand. He is also trying to determine ways in which the company’s profits might be increased in the coming year. Using the Excel Workbook provided and the information provided below, answer the following questions 1. Waterways markets a simple water control and timer that it mass-produces. During the year, the company sold 674,000 units at an average selling price of $4.27 per unit. The variable expenses were $2,055,200, and the fixed expenses were $679,338. a. Using Worksheet 4-1a, determine: 1, the product’s contribution margin ratio? 2. the company’s break-even point in units and in dollars for this product? 3. the margin of safety, both in dollars and as a ratio? 4. how many additional units would have to be sold, if management wanted to increase its 2012 income from this product by 15%? b. Using Worksheet 4-1b, determine how much Net Income will increase if 2012 sales increase by 72,000 units and the cost behaviors do not change
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