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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 by an average
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 0.70 . 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 496,000 sprinkler units at an average unit selling price of 28.80. The manufacturing costs are 8,039,000 variable and 2,100,879 fixed Selling and administrative costs are $2,674,600 variable and 793,460 fixed. If waterways begin mass producing its special-order sprinklers, how would it affect the company If the average sales price of sprinkler didn't increase when the company began mass producing the special-order sprinkler, what would be the effect on the company
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