eBookSales priceVariable cost of goods soldManufacturing marginVariable selling and administrative expensesContribution marginFixed manufacturing costsOperating incomeMHW #9 Chapter 21Unit volume increaseChange in Sales Mix and Contribution MarginHead Pops Inc. manufactures two models of solar-powered, noise-canceling headphones: Sun Sound and Ear Bling models. The company is operating at less than fullcapacity. Market research indicates that 28,000 additional Sun Sound and 30,000 additional Ear Bling headphones could be sold. The operating income by unit of productis as follows:x Contribution margin per unitIncrease in profitabilityTheck My Workv2.cengagenow.comHead Pops Inc.AnalysisSun SoundHeadphones$140.00(78.40)$61.60(28.00)$33.60(14.00)$19.60Prepare an analysis indicating the increase or decrease in total profitability if 28,000 additional Sun Sound and 30,000 additional Ear Bling headphones are produced andsold, assuming that there is sufficient capacity for the additional production. Round your per unit answers to two decimal place.000C CengageNOWv2 | Assignments | OverviewEar BlingHeadphones$125.00(70.00)$55.00(25.00)$30.00(12.50)$17.50Sun Sound Headphones Ear Bling Headphones000+ 88C Online teaching and learning resource from Cengage LPreviousNext

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Description: eBookSales priceVariable cost of goods soldManufacturing marginVariable selling and administrative expensesContribution marginFixed manufacturing costsOperating incomeMHW #9 Chapter 21Unit volume increaseChange in Sales Mix and Contribution MarginHe

Lets understand the basics. When there is excess capacity available then management may decide to…

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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 28,000 additional Sun Sound and 30,000 additional Ear Bling headphones could be sold. The operating income by unit of product is as follows: Sales price Variable cost of goods sold Manufacturing margin Variable selling and administrative expenses Contribution margin Fixed manufacturing costs Operating income Unit volume increase Contribution margin per unit $ crease in profitability Sun Sound Headphones $140.00 (78.40) $61.60 (28.00) $33.60 (14.00) $19.60 Head Pops Inc. Analysis Ear Bling Headphones $125.00 (70.00) $55.00 (25.00) $30.00 Prepare an analysis indicating the increase or decrease in total profitability if 28,000 additional Sun Sound and 30,000 additional Ear Bling headphones are produced an cold, ass that there is sufficie capacity for the additional production. Round your per unit answers to two decimal place. (12.50) $17.50 Sun Sound Headphones Ear Bling Headphones

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 28,000 additional Sun Sound and 30,000 additional Ear Bling headphones could be sold. The operating income by unit of product is as follows: Sales price Variable cost of goods sold Manufacturing margin Variable selling and administrative expenses Contribution margin Fixed manufacturing costs Operating income Unit volume increase Contribution margin per unit $ crease in profitability Sun Sound Headphones $140.00 (78.40) $61.60 (28.00) $33.60 (14.00) $19.60 Head Pops Inc. Analysis Ear Bling Headphones $125.00 (70.00) $55.00 (25.00) $30.00 Prepare an analysis indicating the increase or decrease in total profitability if 28,000 additional Sun Sound and 30,000 additional Ear Bling headphones are produced an cold, ass that there is sufficie capacity for the additional production. Round your per unit answers to two decimal place. (12.50) $17.50 Sun Sound Headphones Ear Bling Headphones

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter11: Differential Analysis And Product Pricing

Section: Chapter Questions

Problem 17E: Product cost method of product costing Smart Stream Inc. uses the product cost method of applying...

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