Waterways Continuing Problem 06 (Part 1)

Waterways has a sales mix of sprinklers, valves, and controllers as follows.

Annual expected sales:
Sale of sprinklers		383,334 units at $26.00
Sale of valves		1,405,558 units at $11.00
Sale of controllers		36,508 units at $43.00

Variable manufacturing cost per unit:
Sprinklers		$14.00
Valves		$8.00
Controllers		$30.00
Fixed manufacturing overhead cost (total)				$779,000

Variable selling and administrative expenses per unit:
Sprinklers		$1.00
Valves		$1.00
Controllers		$3.00
Fixed selling and administrative expenses (total)				$1,598,350

	Your answer is correct.

Determine the sales mix based on unit sales for each product.

		Sprinklers		Valves		Controllers
Sales mix		%		%		%

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Using the annual expected sales for these products, determine the weighted-average unit contribution margin for these three products. (Round answer to two decimal places, e.g. 5.25.)

Weighted-Average Unit Contribution Margin

$

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Assuming the sales mix remains the same, what is the break-even point in units for these products? (Round answer to 0 decimal places, e.g. 2,520.)

Break-even Point in Units

units