and 35,600 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 Sun Sound Ear Bling Headphones Headphones $30.80 $48.00 (17.20) (26.90) $13.60 $21.10 (6.20) (9.60) $7.40 (2.80) $4.60 $11.50 (4.30) $7.20 Prepare an analysis indicating the increase or decrease in total profitability if 32,100 additional Sun Sound and 35,600 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.
and 35,600 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 Sun Sound Ear Bling Headphones Headphones $30.80 $48.00 (17.20) (26.90) $13.60 $21.10 (6.20) (9.60) $7.40 (2.80) $4.60 $11.50 (4.30) $7.20 Prepare an analysis indicating the increase or decrease in total profitability if 32,100 additional Sun Sound and 35,600 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.
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter7: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 29BEB: Sales Needed to Earn Target Income Chillmax Company plans to sell 3,500 pairs of shoes at 60 each in...
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