waterways is thinking of mass-producing one of its special-order sprinklers. to do so would increase variable costs for all sprinklers by an average of $0.70 per unit. The company also estimates that this chance could increase the overall nubmer of sprinklers osld by 10%, and the average sales price would increase $0.20 per unit. Waterways currently seels 491740 sprinkler units at an average selling price of $26.50. The manufacturing costs are $6863512 variable and $2050140 fixed. Selling and Administrative costs are $2651657 variable and $794950 fixed.

If the average sales price per unit did not increase when the company began mass-producing the special-order spinkler, what would be the effect on the company?

Contribution margin ratio Increase or Decrease by what percent:

Profit Increase or decrease by $________?

How do I solve this???

Thank you,

Beena