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 change could increase the overall number of sprinklers sold by 10%, and the average sales price would increase $0.20 per unit. Waterways currently sells 489,000 sprinkler units at an average selling price of $25.80. The manufacturing costs are $6,825,310 variable and $1,693,803 fixed. Selling and administrative costs are $2,636,840 variable and $793,560 fixed. If the average sales price per sprinkler unit did not increase when the company began mass-producing the special-order sprinkler, what would be the effect on the company? (Round answers to 0 decimal places, e.g. 5% or 2,520.)

Contribution margin ratio		DecreaseIncrease		by			%
Profit		IncreaseDecrease		by		$