View Policies Current Attempt in Progress 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 year. This problem asks you to use cost-volume-profit concepts to help Waterways understand contribution margins of some of its products and decide whether to mass-produce any of them. Waterways markets a simple water control and timer that it mass-produces. Last year, the company sold 638,000 units at an average selling price of $3.90 per unit. The variable costs were $1,741,740, and the fixed costs were $522.522. Question 4 of 6 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 $0.70 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 485,000 sprinkler units at an average selling price of $28.80. The manufacturing costs are $7,783,330 variable and $2.021.847 fixed. Selling and administrative costs are $2,692.670 variable and $803,510 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, eg. 2,520) Contribution margin ratio Current Net income $ eTextbook and Media % New $ Effect by 00 220 P The of its special-order sprinklers. To do so would increase variable costs for all sprinklers by an average of $0.70 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 485,000 sprinkler units at an average selling price of $28.80. The manufacturing costs are $7,783,330 variable and $2.021.847 fixed. Selling and administrative costs are $2,692,670 variable and $803,510 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.) New % Effect by eTextbook and Media % $ by $ 986