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

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Accounting

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.)
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