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 $0.60. 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 482,000 sprinkler units at an average unit selling price of $28.80. The manufacturing costs are $8,404,700 variable and $1,308,907 fixed. Selling and administrative costs are $2,700,580 variable and $808,600 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.) Contribution margin ratio Net income $ eTextbook and Media Save for Later Current % $ New Effect % Decrease by Increase by $ C Attempts: unlimited Submit Answer