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Waterways is thinking of mass-producing one of its special order sprinklers. To do so would...

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Waterways is thinking of mass-producing one of its special order sprinklers. To do so would increase variable costs for a 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 481,000 sprinkler units at an average selling price of $25.20. The manufacturing costs are $5,811,160 variable and $2,155,660 fixed. Selling and administrative costs are $2,673,680 variable and $798,370 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 O decimal places, e.g. 5% or 2,520.) Contribution margin ratio Decrease v Profit Decrease

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