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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 massproducing one of its specialorder sprinklers. To do so would increase unit variable costs for all sprinklers by an average of $ The company also estimates that this change could increase the overall number sprinklers sold by and the average unit sales price would increase $ Waterways currently sells sprinkler units at an average unit selling price of $ The manufacturing costs are $ variable and $ fixed. Selling and administrative costs are $ variable and $ fixed.
If the average unit sales price per sprinkler did not increase when the company began massproducing the specialorder sprinkler, what would be the effect on the company? Round ratio answer to decimal places, eg and profit answer to decimal places, eg
Contribution margin ratio
by
Profit by
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