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Your answer is partially correct. Waterways is thinking of mass - producing one of its special - order sprinklers. To do so would increase unit

Your answer is partially correct.
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 490,000 sprinkler units at an
average unit selling price of $24.40. The manufacturing costs are $5,760,440 variable and $2,101,930 fixed. Selling and
administrative costs are $2,608,760 variable and $806,080 fixed.
If Waterways begins mass-producing its special-order sprinklers, how would this affect the company? (Round ratio answers to 0
decimal places, e.g.5% and net income answers to 2 decimal places, e.g.5,275.25.)
Current
New
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