Question: Note: do not key into the shaded area, those are done for you. Some areas will update automatically as you fill out the problem *Determine
| Note: do not key into the shaded area, those are done for you. Some areas will update automatically as you fill out the problem *Determine the sales mix based on unit sales for each product. *Using the annual expected sales for these products determine the weighted average unit contribution margin for these three products ( round to two decimal places). | |||||||||
| Part 1 | |||||||||
| (a) | Total Units | ||||||||
| Item | Units | ||||||||
| Sprinklers | 460,000 | ||||||||
| Valves | 1,480,000 | ||||||||
| Controllers | 60,000 | ||||||||
| Total Units | 2,000000 | ||||||||
| Sales Mix % | |||||||||
| Item | Percentage | ||||||||
| Sprinklers | |||||||||
| Valves | |||||||||
| Controllers | |||||||||
| (b) | Per Unit | ||||||||
| Sprinklers | Valves | Controllers | |||||||
| Sales price | |||||||||
| Variable costs: | |||||||||
| Manufacturing | |||||||||
| Selling & admin. | |||||||||
| Total variable costs | |||||||||
| Contribution margin | |||||||||
| Weighted-Average Unit Contribution Margin | |||||||||
| Weighted-Avg | |||||||||
| Unit CM X | Sales Mix % = | Unit CM | |||||||
| Sprinklers | - | 0% | |||||||
| Valves | - | 0% | |||||||
| Controllers | - | 0% | |||||||
| Total | |||||||||
Question: Waterways has a sales mix of sprinklers, valves, and controllers as follows. Annual expected s...
Waterways has a sales mix of sprinklers, valves, and controllers as follows.
| Annual expected sales: | ||
| Sale of sprinklers | 460,000 units at $26.50 | |
| Sale of valves | 1,480,000 units at $11.20 | |
| Sale of controllers | 60,000 units at $42.50 |
| Variable manufacturing cost per unit | ||||
| Sprinklers | $13.96 | |||
| Valves | $7.95 | |||
| Controllers | $29.75 | |||
| Fixed manufacturing overhead cost (total) | $760,000 | |||
| Variable selling and administrative expenses per unit: | ||||
| Sprinklers | $1.30 | |||
| Valves | $0.50 | |||
| Controllers | $3.41 | |||
| Fixed selling and administrative expenses (total) | $1,600,000 | |||
Determine the sales mix based on unit sales for each product. (Round answers to 0 decimal places, e.g. 25%.)
Sprinklers %
Valves %
Controllers %
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