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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
Waterways have a sales mix of sprinklers, valves, and controllers as follows:
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· Annual expected sales:
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Sale of sprinklers 460,000 units at $26.50
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Sale of valves 1,480,000 units at $11.20
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Sale of controllers 60,000 units at $42.50
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· Variable manufacturing cost per unit:
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Sprinklers $13.75
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Valves $ 7.95
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Controllers $29.75
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· Fixed Manufacturing overhead cost (total) $760,000
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· Variable selling and administrative expenses per unit:
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Sprinklers $1.30
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Valves $0.50
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Controllers $3.41
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· Fixed selling and administrative expenses (total) $1,600,000
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Instructions
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(a) Determine the sales mix based on unit sales for each product.
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(b) Using the annual expected sales for these products, determine the weighted-average unit contribution margin for these three products (Round to two decimal places.)
Assuming the sales mix remains the same, what is the break-even point in units for these products
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