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\mathrm{.}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\mathrm{.}20.$ Waterways currently sells $493,000$ sprinkler units at an

average unit selling price of $$26\mathrm{.}20.$ The manufacturing costs are $$7,004,760$ variable and $$1,754,947$ fixed. Selling and

administrative costs are $$2,682,690$ variable and $$802,950$ 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$.5,275\mathrm{.}25.)$

Attempts: unlimited