$(D2)$

Your answer is partially correct.

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 $$0\mathrm{.}70.$ The company also estimates that this change could increase the overall number of sprinklers sold by $10\%,$ and the average unit sales price would increase $$0\mathrm{.}20.$ Waterways currently sells $484,000$ sprinkler units at an average unit selling price of $$28\mathrm{.}20.$ The manufacturing costs are $$7,589,350$ variable and $$1,925,074$ fixed. Selling and administrative costs are $$2,647,250$ variable and $$805,500$ fixed.

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$.5,275\mathrm{.}25.)$