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 forecasted sales. The board of directors is very supportive of any initiatives that will lead to increased profits for the company in the upcoming year.

Waterways markets a simple water controller and timer that it mass-produces. During 2020, the company sold 335,000 units at an average selling price of $8 per unit. The variable expenses were $1,507,500, and the fixed expenses were $759,500.

DX received_2317516788391677.webp 2.? Tit 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, e.g. 15.2% and change in profit to o decimal places, e.g. 5,275.)