The vice-president of sales and marketing, Madison Tremblay, is trying to plan for the coming year in terms of production needs to meet the forecast sales. The board of directors is very supportive of any initiatives that will lead to increased operating income for the company in the upcoming year. Waterways markets a simple water controller and timer that it mass-produces. During 2022, the company sold 350,000 units at an average selling price of $8.00 per unit. The variable costs were $1,820,000, and the fixed costs were $921,200.

Waterways is considering mass-producing one of its special-order screens. This would increase variable costs for all screens by an average of $0.82 per unit. The company also estimates that this change could increase the overall number of screens sold by 10%, and the average sales price would increase by $0.29 per unit. Waterways currently sells 566,000 screen units at an average selling price of $28.00. The manufacturing costs are $7,893,000 variable and $2,357,660 fixed. Selling and administrative costs are $3,087,400 variable and $914,190 fixed. If Waterways begins mass-producing its special-order screens, how would this affect the company?

and the average sales price would increase by $0.29 per unit. Waterways currently sells 566,000 screen units at an average selling price of $28.00. The manufacturing costs are $7,893,000 variable and $2,357,660 fixed. Selling and administrative costs are $3,087,400 variable and $914,190 fixed. If Waterways begins mass-producing its special-order screens, how would this affect the company? (Round contribution margin ratio to 1 decimal place, eg. 15.2% and operating income to O decimal places, eg. 5,275) Current New Contribution margin ratio by Operating income $ 5 by If the average sales price per screen did not increase when the company began mass producing the screen, what would be the effect on the company? (Round change in contribution margin ratio to 1 decimal place, eg. 15.2% and change in profit to O decimal places, eg. 5,275.) $3,087,400 variable and $914,190 fixed. If Waterways begins mass-producing its special-order screens, how would this affect the company? (Round contribution margin ratio to 1 decimal place, eg. 15.2% and operating income to O decimal places, eg. 5,275.) Current New Effect 56 by 96 $ by S If the average sales price per screen did not increase when the company began mass-producing the screen, what would be the effect on the company? (Round change in contribution margin ratio to 1 decimal place, eg, 15.2% and change in profitto O decimal places, e.g. 5,275.)