1 OWv2 Onlin X m/ilm/takeAssignment/takeAssignment Main.do?invoker-assignments&takeAssignmentSessionLocator=assignment-take8inprogres eBook Calculator Print Item Change in Sales Mix and Contribution Margin Head Pops Inc. manufactures two models of solar-powered, noise-canceling headphones: Sun Sound and Ear Bling models. The company is operating at less than full capacity. Market research indicates that 21,700 additional Sun Sound and 23,700 additional Ear Bling headphones could be sold. The operating income by unit of product is as follows: Ear Bling Sun Sound Headphones Headphones Sales price $38.40 $59.90 Variable cost of goods sold (21.50) (33.50) Manufacturing margin $16.90 $26.40 Variable selling and administrative expenses (7.70) (12.00) Contribution margin $9.20 $14.40 (3.50) (5.40) Fixed manufacturing costs $5.70 $9.00 Operating income Prepare an analysis indicating the increase or decrease in total profitability if 21,700 additional Sun Sound and 23,700 additional Ear Bling headphones are produced and sold, assuming that there is sufficient capacity for the additional production. Round your per unit answers to two decimal place. Head Pops Inc. 2:23 PM O 11/5/2019 hp и ПЕ v2 |Onlin X LE Im/takeAssignment/takeAssignment Main.do?invoker=assignments&takeAssignmentSessionLocator=assignment-take&inprogres (5.40) Fixed manufacturing costs (3.50) $5.70 $9.00 Operating income Prepare an analysis indicating the increase or decrease in total profitability if 21,700 additional Sun Sound and 23,700 additional Ear Bling headphones are produced and sold, assuming that there is sufficient capacity for the additional production. Round your per unit answers to two decimal place. Head Pops Inc. Analysis Ear Bling Headphones Sun Sound Headphones Unit volume increase $ x Contribution margin per unit $ $ Increase in profitability Previous Check My Work 6 more Check My Work uses remaining. Submit Assignment for Grading Save and Exit 2:23 PM O W 11/5/2019 hp
1 OWv2 Onlin X m/ilm/takeAssignment/takeAssignment Main.do?invoker-assignments&takeAssignmentSessionLocator=assignment-take8inprogres eBook Calculator Print Item Change in Sales Mix and Contribution Margin Head Pops Inc. manufactures two models of solar-powered, noise-canceling headphones: Sun Sound and Ear Bling models. The company is operating at less than full capacity. Market research indicates that 21,700 additional Sun Sound and 23,700 additional Ear Bling headphones could be sold. The operating income by unit of product is as follows: Ear Bling Sun Sound Headphones Headphones Sales price $38.40 $59.90 Variable cost of goods sold (21.50) (33.50) Manufacturing margin $16.90 $26.40 Variable selling and administrative expenses (7.70) (12.00) Contribution margin $9.20 $14.40 (3.50) (5.40) Fixed manufacturing costs $5.70 $9.00 Operating income Prepare an analysis indicating the increase or decrease in total profitability if 21,700 additional Sun Sound and 23,700 additional Ear Bling headphones are produced and sold, assuming that there is sufficient capacity for the additional production. Round your per unit answers to two decimal place. Head Pops Inc. 2:23 PM O 11/5/2019 hp и ПЕ v2 |Onlin X LE Im/takeAssignment/takeAssignment Main.do?invoker=assignments&takeAssignmentSessionLocator=assignment-take&inprogres (5.40) Fixed manufacturing costs (3.50) $5.70 $9.00 Operating income Prepare an analysis indicating the increase or decrease in total profitability if 21,700 additional Sun Sound and 23,700 additional Ear Bling headphones are produced and sold, assuming that there is sufficient capacity for the additional production. Round your per unit answers to two decimal place. Head Pops Inc. Analysis Ear Bling Headphones Sun Sound Headphones Unit volume increase $ x Contribution margin per unit $ $ Increase in profitability Previous Check My Work 6 more Check My Work uses remaining. Submit Assignment for Grading Save and Exit 2:23 PM O W 11/5/2019 hp
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
What is the unit volume increase ?
What is the x contribution margin per unit ?
what is the Increase in profitability?
Transcribed Image Text:1
OWv2 Onlin X
m/ilm/takeAssignment/takeAssignment Main.do?invoker-assignments&takeAssignmentSessionLocator=assignment-take8inprogres
eBook
Calculator
Print Item
Change in Sales Mix and Contribution Margin
Head Pops Inc. manufactures two models of solar-powered, noise-canceling headphones: Sun Sound and Ear Bling models. The
company is operating at less than full capacity. Market research indicates that 21,700 additional Sun Sound and 23,700
additional Ear Bling headphones could be sold. The operating income by unit of product is as follows:
Ear Bling
Sun Sound
Headphones Headphones
Sales price
$38.40
$59.90
Variable cost of goods sold
(21.50)
(33.50)
Manufacturing margin
$16.90
$26.40
Variable selling and administrative expenses
(7.70)
(12.00)
Contribution margin
$9.20
$14.40
(3.50)
(5.40)
Fixed manufacturing costs
$5.70
$9.00
Operating income
Prepare an analysis indicating the increase or decrease in total profitability if 21,700 additional Sun Sound and 23,700 additional
Ear Bling headphones are produced and sold, assuming that there is sufficient capacity for the additional production. Round
your per unit answers to two decimal place.
Head Pops Inc.
2:23 PM
O
11/5/2019
hp
Transcribed Image Text:и ПЕ
v2 |Onlin X
LE
Im/takeAssignment/takeAssignment Main.do?invoker=assignments&takeAssignmentSessionLocator=assignment-take&inprogres
(5.40)
Fixed manufacturing costs
(3.50)
$5.70
$9.00
Operating income
Prepare an analysis indicating the increase or decrease in total profitability if 21,700 additional Sun Sound and 23,700 additional
Ear Bling headphones are produced and sold, assuming that there is sufficient capacity for the additional production. Round
your per unit answers to two decimal place.
Head Pops Inc.
Analysis
Ear Bling Headphones
Sun Sound Headphones
Unit volume increase
$
x Contribution margin per unit
$
$
Increase in profitability
Previous
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Save and Exit
2:23 PM
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W
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