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 494,000 sprinkler units at an average unit selling price of $25.20. The manufacturing costs are $6,668,060 variable and $1,634,281 fixed. Selling and administrative costs are $2.668,540 variable and $807,700 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 O decimal places, e.g. 5% and profit answer to 2 decimal places, e.g. 5,275.25.) Contribution margin ratio % Profit by by $ Current Attempt in Progress Vice President for Sales and Marketing at Waterways Corporation is planning for production needs to meet sales demand in the coming year. He is also trying to determine how the company's profits might be increased in the coming year. This problem asks you to use cost-volume-profit concepts to help Waterways understand contribution margins of some of its products and decide whether to mass-produce any of them. Waterways markets a simple water control and timer that it mass-produces. Last year, the company sold 635,000 units at an average unit selling price of $4.90. The variable costs were $1,866,900, and the fixed costs were $846,328. (a1) Your answer is correct. What is the product's contribution margin ratio? (Round ratio to O decimal places, e.g. 25%.) Contribution margin ratio 40 %