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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

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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 $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 491,740 sprinkler units at an average 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 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, eg. 5% and profit answer to 2 decimal ploces, es. 5,275.25. Contribution margin ratio by % Profit

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