Waterways Continuing Problem 07 (Part 1) Waterways mass-produces a special connector unit that it normally sells for $4.20. It sells approximately 32,500 of these units each year. The variable costs for each unitar $2.20. A company in Canada that has been unable to produce enough of a similar connector to meet customer demand would like to buy 14,300 of these units at $2.50 per unit. The production of these units is near capacity at Waterways, so to accept the offer from the Canadian company would require temporarily adding another shift to its production line. To do this would increase variable manufacturing costs by $0.30 per unit. However, variable selling costs would be reduced by $0.20 a unit. An irrigation company has asked for a special order of 2,000 of the connectors. To meet this special order, Waterways would not need an additional $3.00 per unit , and the Irrigation company is willing to pay Your answer is partially correct. Try again. What are the consequences of Waterways agreeing to provide the 14,300 units to the Canadian company? Would this be a wise special order to accept? Waterways accept the special order because net income increases TEKT LINK TO TEXT UNE TO TEXT Your a wer is partially correct. Try again. Should Waterways accept the special order from the irrigation company? Waterways (who accept the special order because net income melance LIN E X LINK TO THE LINK TO TEXT Your party correct. Try agan What would be the con quences of accepting both special orders? t o rders create A income by se b