Note: do not key into the shaded area, those are done for you. Some areas will...

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 %

Expert Solution




(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

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