"> (Answered) 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... - Tutorials Prime

## (Answered) 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...

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...

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 \$0.70 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 491,740 sprinkler units at an average selling price of \$26.50. The manufacturing costs are \$6,863,512 variable and \$2,050,140 fixed. Selling and administrative costs are \$2,651,657 variable and \$794,950 fixed.If Waterways begins mass-producing its special-order sprinklers, how would this affect the company?Â (Round ratio to 0 decimal places, e.g. 5% and Net income to 2 decimal places, e.g. 2,520.25.)CurrentNewEffectContribution margin ratio%%byÂ %Net income\$\$by\$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 \$0.70 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 491,740 sprinkler units at an average selling price of \$26.50. The manufacturing costs are \$6,863,512 variable and \$2,050,140 fixed. Selling and administrative costs are \$2,651,657 variable and \$794,950 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?Â (Round answers to 0 decimal places, e.g. 5% or 2,520.25.)Contribution margin ratiobyÂ %Profitby\$Could you please help me answer this in the form of: current new effectcontribution margin ratio____________%____________%____________by_____________%net income \$____________\$____________ _____________\$______________

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This question was answered on: Jan 02, 2020

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