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 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 %

Answer 1

	(a)	Total Units
		Item	Units
		Sprinklers	4,60,000
		Valves	14,80,000
		Controllers	60,000
		Total Units	20,00,000
		Sales Mix %
		Item	Percentage
		Sprinklers	23.00%
		(460000/2000000)
		Valves	74.00%
		(1480000/2000000)
		Controllers	3.00%
		(60000/2000000)
	(b)	Per Unit
			Sprinklers	Valves	Controllers
		Sales price	26.50	11.20	42.50
		Variable costs:
		Manufacturing	13.96	7.95	29.75
		Selling & admin.	1.30	0.50	3.41
		Total variable costs	15.26	8.45	33.16
		Contribution margin	11.24	2.75	9.34
		Weighted-Average Unit Contribution Margin
					Weighted-Avg
			Unit CM   X	Sales Mix %   =	Unit CM
		Sprinklers	11.24	23.00%	2.59
		Valves	2.75	74.00%	2.04
		Controllers	9.34	3.00%	0.28
		Total			4.90