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The Vice President for Sales and Marketing at Waterways Corporation is planning for production needs to meet sales demand in the coming year. He is

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The Vice President for Sales and Marketing at Waterways Corporation is planning for production needs to meet sales demand in the coming year. He is also trying to determine how the company's profits might be increased in the coming ydar. This problem asks you to use cost contribution margins of some of its products and decide whether to mass-produce any of them. -volume-profit concepts to help Waterways understand Waterways markets a simple water control and timer that it mass-produces. Last year, the company sold 720,000 units at an average selling price of $4.90 per unit. The variable costs were $2,116,800, and the fixed costs were $945,504. ing of mass-producing one of its special-order sprinklers. To do so would increase variable costs for all sprinklers by an average of S0.60 per unit company also estimates that thils change could increase the overall number of sprinklers sold by 10%, and the average sales price would increase $0.20 per unit. units at an average selling price of $28.20. The manufacturing costs are $8,393,890 variable and $1,283,761 fixed. s thinki Waterways currently sells 489,000 sprinkler Selling and administrative costs are $2,637,950 variable and $800,440 fixed. company began mass-producing the special-order sprinkler, what would be the effect on the If the average sales price per sprinkler unit did not increase when the company? (Round answers to 0 decimal places, eg. 5% or 2,520.) Decrese by 70416 Profit

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