Waterways is thinking of mass-producing one of its speciat-order sprinklers. To do so would increase unit varlable costs for all sprinklers by an average of $0.70. The company also estimates that this change could increase the overall number of sprinkiers sold by 10%, and the average unit sales price would increase $0.20. Waterways currently sells 493,000 sprinkler units at an average unit selling price of $26,20. The manufacturing costs are $7,004,760 variable and $1,754,947 fixed Selling and administrative costs are $2,682,690 variable and $802,950 fxed. If the average unit sales price per sprinkler did not increase when the company began mass-producing the speciaf-order sarinkiler, what would be the effect on the company? (Round rotio answer to 0 decimal ploces, es. 5% and profit answer to 2 decimal ahcoes es 5.275 .251 Contributionmargin ratio Profit by 5 Vice President for Sales and Marketing at Waterways Corporation is planning for production needs to meet sales demand in the coming year. He is also trying to determine how the company's profits might be increased in the coming year. This problem asks you to use cost-volume-profit concepts to help Waterways understand contribution margins of some of its products and decide whether to mass-produce any of them. Waterways markets a simple water control and timer that it mass-produces. Last year, the company sold 657,000 units at an average unit selling price of $4.40. The variable costs were $1,734,480, and the foxed costs were $809,424. (a1) What is the product's contribution margin ratio? (Round rotio to 0 decimal ploces, es. 25% ) What is the company's break-even point in sales units and in sales dollars for this product? Break-even point in units units Break-even point in dollars $ What is the margin of safety, both in dollars and as a ratio? (Round ratio to 0 decimal ploces, e.8 25\%.) Margin of safety in dollars Margin of safety ratio % If management wanted to increase its income from this product by 10%, how many additional units would have to be sold to reach this income level? Waterways would have to sell an additional units If sales increase by 52,000 units and the cost behaviors do not change, how much will income increase on this product? income will increase by 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%6, and the average unit sales price would increase $0.20. Waterways currently sells 493,000 sprinkler units at an average unit selling price of $26,20. The manufacturing costs are $7,004,760 variable and 51,754,947 fixed, 5eilling and administrative costs are $2.682.690 variable and $802.950 fixed, If Waterways begins mass-producing its special-order sprinklers, how would this atfect the company? (Round ratio answers to 0 decimal places, es. 5% and net income answers to 2 decimal ploces, es. 5,275.25. Waterways is thinking of mass producing one of its special-order sprinklers. To do so would increase urst vmiable costs for all sprinklers by an average of \$\$0.70. The company alse estimates that this change could increave the overall number of sprinklers sold by 10% and the average unit sales price would increase $020 Waterways currenty sells 499,000 aprinkier unifs at an average unit celling price of $26.20. The manufacturing costs are 57,004,760 varisble and 51.754,947 haed. Selling and administrative costs are $2,682,680 yariable and $002.950 fixed It the average unit sales price per sprinkler did not increase when the compary began mass-producing the upecialorder iph inker. What would be the effect on the company? (Round ratio aniwer to O decimal places, es 5% and profit answer tob 2 decimaf places, es. 5,275251 Contribution margin ratio Profit