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If sales increase by 5 6 , 0 0 0 units and the cost behaviors do not change, how much will income increase on this
If sales increase by units and the cost behaviors do not change, how much will
income increase on this product?
Income will increase by
Waterways is thinking of massproducing one of its specialorder sprinklers. To do so
would increase variable costs for all sprinklers by an average of $ per unit. The
company also estimates that this change could increase the overall number of sprinklers
sold by and the average sales price would increase $ per unit. Waterways
currently sells sprinkler units at an average selling price of $ The
manufacturing costs are $ variable and $ fixed. Selling and
administrative costs are $ variable and $ fixed.
If Waterways begins massproducing its specialorder sprinklers, how would this affect
the company? Round ratio to decimal places, eg and Net Income to
decimal places, eg
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