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 482,000 sprinkler units at an average unit selling price of $28.80. The manufacturing costs are $8,404,700 variable and $1,308,907 fixed. Selling and administrative costs are $2,700,580 variable and $808,600 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		select an effect IncreaseDecrease		by		enter percentages rounded to 0 decimal places	%
Profit		select an effect DecreaseIncrease		by		$enter a dollar amount rounded to 2 decimal places