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Waterways is thinking of mass - producing one of its special - order sprinklers. To do so would increase unit variable costs for all sprinklers

Waterways is thinking of mass-producing one of its special-order sprinklers. To do so would increase unit variable costs for all
sprinklers by an average of $0.60. The company also estimates that this change could increase the overall number of sprinklers
sold by 10%, and the average unit sales price would increase $0.20. Waterways currently sells 489,000 sprinkler units at an
average unit selling price of $28.20. The manufacturing costs are $8,393,890 variable and $1,283,761 fixed. Selling and
administrative costs are $2,637,950 variable and $800,440 fixed.
If the average unit sales price per sprinkler did not increase when the company began mass-producing the special-order sprinkler,
what would be the effect on the company? (Round ratio answer to 0 decimal places, e.g.5% and profit answer to 2 decimal places, e.g.
5,275.25.)
Contribution margin ratio increase/decrease by _____
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