Waterways is thinking of mass-producing one of its special-order sprinklers. To do so would increase variable costs for all sprinklers by an average of $0.60 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 482,000 sprinkler units at an average 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 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 ratio to 2 decimal places, eg. 5.25% and profit to O decimal places, e.g. 2,520) Contribution margin ratio by % Profit

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