can you please help me set this problem up? thanks
Waterways is thinking of mass-producing one of its special-order sprinklers. To do so would increase variable costs for all sprinklers by an average of $0.70 per unit. The company also estimates that this change could increase the overall number of sprinklers sold by 10%, and the average sales price would increase $0.20 per unit. Waterways currently sells 501,000 sprinkler units at an average selling price of $28.60. The manufacturing costs are $8,831,600 variable and $1,395,533 fixed. Selling and administrative costs are $2,631,280 variable and $787,310 fixed. If Waterways begins mass-producing its special-order sprinklers, how would this affect the company? (Round ratio to 0 decimal places, e.g. 5% and Net income to 0 decimal places, e.g. 2,520.) Current New Effect Contribution margin ratio 20% 22% Increase v N % Net income 682877 LA 833110 Increase by 150233 LINK TO TEXT LINK TO TEXT LINK TO TEXT Waterways is thinking of mass-producing one of its special-order sprinklers. To do so would increase variable costs for all sprinklers by an average of $0.70 per unit. The company also estimates that this change could increase the overall number of sprinklers sold by 10%, and the average sales price would increase $0.20 per unit. Waterways currently sells 501,000 sprinkler units at an average selling price of $28.60. The manufacturing costs are $8,831,600 variable and $1,395,533 fixed. Selling and administrative costs are $2,631,280 variable and $787,310 fixed. If the average sales price per sprinkler unit did not increase when the company began mass-producing the special-order sprinkler, what would be the effect on the company? (Round answers to 0 decimal places, e.g. 5% or 2,520.) Contribution margin ratio 4 Profit by Click if you would like to Show Work for this question: Open Show Work