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 495,000 sprinkler units at an average unit selling price of $ 25.80. The manufacturing costs are $ 6,954,830 variable and $ 1,723,025 fixed. Selling and administrative costs are $ 2,623,420 variable and $ 807,800 fixed. If Waterways begins mass-producing its special-order sprinklers, how would this affect the company?

		Current			New			Effect
Contribution margin ratio		25	%		23	%		decrease		by		2	%
Net income		$661925			$ enter a dollar amount rounded to 2 decimal places???			Increase		by		$ ?????