managerial Accounting

(61) 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 $0.60 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 482.000 sprinkler units at an average selling price of $28.80. The manufacturing costs are $8,404,700 variable and $1,308,907 fixed. Selling and administrative costs are $2,700,580 variable and $808,600 fixed. If Waterways begins mass-producing its special-order sprinklers, how would this affect the company? (Round ratio to 2 decimal places, e.g. 5.25% and Net income to O decimal places, e.g. 2,520.) Current New Effect Contribution % % by margin ratio $ $ Net income N eTextbook and Media Attempts: 0 of 1 used Submit Answer Save for Later