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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 of
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 increage the overali number of sprinklers sold by 10%, and the average unit sales price would increase $0.20. Waterways currently sells 491,740 sprinkler units at an averaze unit selling price of $26.50. The manufacturing costs are $6.863.512 variable and $2.050,140 fixed. Selling and administrative costs are $2.651.657 variable and $794.950 fixed If Waterways begins mass-produeing its special-order sprinklers. how would this affect the company? (Round ratio answers to 0 decimal ploces, e.g. 5% and net income onswers to 2 decimal places eg. 5.275.25.J
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