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 $0.70. 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 485,000 sprinkler units at an average unit selling price of $28.80. The manufacturing costs are $7,783,330 variable and $2,021,847 fixed. Selling and administrative costs are $2,692,670 variable and $803,510 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 Medial (b2) Current Your answer is partially correct. Contribution margin ratio Profit 666643 25 % Decrease Decrease $ by New 23 % 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 $0.70. 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 485,000 sprinkler units at an average unit selling price of $28.80. The manufacturing costs are $7,783,330 variable and $2,021,847 fixed. Selling and administrative costs are $2,692,670 variable and $803,510 fixed. by $ 749093 If the average unit sales price per sprinkler did not increase when the company began mass-producing the special- order sprinkler, what would be the effect on the company? (Round ratio answer to 0 decimal places, e.g. 5% and profit answer to 2 decimal places, e.g. 5,275.25.) Effect i Decrease Increase Attempts: unlimited %
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 $0.70. 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 485,000 sprinkler units at an average unit selling price of $28.80. The manufacturing costs are $7,783,330 variable and $2,021,847 fixed. Selling and administrative costs are $2,692,670 variable and $803,510 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 Medial (b2) Current Your answer is partially correct. Contribution margin ratio Profit 666643 25 % Decrease Decrease $ by New 23 % 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 $0.70. 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 485,000 sprinkler units at an average unit selling price of $28.80. The manufacturing costs are $7,783,330 variable and $2,021,847 fixed. Selling and administrative costs are $2,692,670 variable and $803,510 fixed. by $ 749093 If the average unit sales price per sprinkler did not increase when the company began mass-producing the special- order sprinkler, what would be the effect on the company? (Round ratio answer to 0 decimal places, e.g. 5% and profit answer to 2 decimal places, e.g. 5,275.25.) Effect i Decrease Increase Attempts: unlimited %
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Please don't give image format
![(b1)
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 $0.70. 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 485,000 sprinkler units at an average unit selling price of $28.80. The manufacturing costs are
$7,783,330 variable and $2,021,847 fixed. Selling and administrative costs are $2,692,670 variable and $803,510
fixed.
Your answer is correct.
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
(b2)
Your answer is partially correct.
Profit
Current
Contribution margin ratio
eTextbook and Media
666643
25 %
Decrease
Decrease
$
by
New
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 $0.70. 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 485,000 sprinkler units at an average unit selling price of $28.80. The manufacturing costs are
$7,783,330 variable and $2,021,847 fixed. Selling and administrative costs are $2,692,670 variable and $803,510
fixed.
23 %
If the average unit sales price per sprinkler did not increase when the company began mass-producing the special-
order sprinkler, what would be the effect on the company? (Round ratio answer to 0 decimal places, e.g.
5% and profit answer to 2 decimal places, e.g. 5,275.25.)
by $
749093
Effect
Decrease
Increase
Attempts: unlimited
2 i %](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fea6bde4e-c725-4e00-a32f-5e39c02069ee%2F0d5a7a39-09f2-4b4b-8f28-d68303db9a66%2F23z9tw3_processed.jpeg&w=3840&q=75)
Transcribed Image Text:(b1)
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 $0.70. 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 485,000 sprinkler units at an average unit selling price of $28.80. The manufacturing costs are
$7,783,330 variable and $2,021,847 fixed. Selling and administrative costs are $2,692,670 variable and $803,510
fixed.
Your answer is correct.
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
(b2)
Your answer is partially correct.
Profit
Current
Contribution margin ratio
eTextbook and Media
666643
25 %
Decrease
Decrease
$
by
New
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 $0.70. 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 485,000 sprinkler units at an average unit selling price of $28.80. The manufacturing costs are
$7,783,330 variable and $2,021,847 fixed. Selling and administrative costs are $2,692,670 variable and $803,510
fixed.
23 %
If the average unit sales price per sprinkler did not increase when the company began mass-producing the special-
order sprinkler, what would be the effect on the company? (Round ratio answer to 0 decimal places, e.g.
5% and profit answer to 2 decimal places, e.g. 5,275.25.)
by $
749093
Effect
Decrease
Increase
Attempts: unlimited
2 i %
![(b1)
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 $0.70. 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 485,000 sprinkler units at an average unit selling price of $28.80. The manufacturing costs are
$7,783,330 variable and $2,021,847 fixed. Selling and administrative costs are $2,692,670 variable and $803,510
fixed.
Your answer is correct.
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
(b2)
Your answer is partially correct.
Profit
Current
Contribution margin ratio
eTextbook and Media
666643
25 %
Decrease
Decrease
$
by
New
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 $0.70. 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 485,000 sprinkler units at an average unit selling price of $28.80. The manufacturing costs are
$7,783,330 variable and $2,021,847 fixed. Selling and administrative costs are $2,692,670 variable and $803,510
fixed.
23 %
If the average unit sales price per sprinkler did not increase when the company began mass-producing the special-
order sprinkler, what would be the effect on the company? (Round ratio answer to 0 decimal places, e.g.
5% and profit answer to 2 decimal places, e.g. 5,275.25.)
by $
749093
Effect
Decrease
Increase
Attempts: unlimited
2 i %](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fea6bde4e-c725-4e00-a32f-5e39c02069ee%2F0d5a7a39-09f2-4b4b-8f28-d68303db9a66%2F3l9kwtl_processed.jpeg&w=3840&q=75)
Transcribed Image Text:(b1)
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 $0.70. 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 485,000 sprinkler units at an average unit selling price of $28.80. The manufacturing costs are
$7,783,330 variable and $2,021,847 fixed. Selling and administrative costs are $2,692,670 variable and $803,510
fixed.
Your answer is correct.
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
(b2)
Your answer is partially correct.
Profit
Current
Contribution margin ratio
eTextbook and Media
666643
25 %
Decrease
Decrease
$
by
New
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 $0.70. 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 485,000 sprinkler units at an average unit selling price of $28.80. The manufacturing costs are
$7,783,330 variable and $2,021,847 fixed. Selling and administrative costs are $2,692,670 variable and $803,510
fixed.
23 %
If the average unit sales price per sprinkler did not increase when the company began mass-producing the special-
order sprinkler, what would be the effect on the company? (Round ratio answer to 0 decimal places, e.g.
5% and profit answer to 2 decimal places, e.g. 5,275.25.)
by $
749093
Effect
Decrease
Increase
Attempts: unlimited
2 i %
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 17 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Recommended textbooks for you
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education