Change in 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 full capacity.Market research indicates that 29,400 additional Sun Sound and 32,300 additional Ear Bling headphones could be sold. The operating income by unit of product is as follows:Sales priceVariable cost of goods soldManufacturing marginVariable selling and administrative expensesContribution marginFixed manufacturing costsOperating incomeHead Pops Inc.AnalysisLine Item DescriptionUnit volume increasex Contribution margin per unitIncrease in profitabilitySun SoundEar BlingHeadphones Headphones$29.80$46.50(16.70)(26.00)$13.10$20.50(6.00)$7.10(2.70)$4.40Prepare an analysis indicating the increase or decrease in total profitability if 29,400 additional Sun Sound and 32,300 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 places.000Sun Sound Ear BlingHeadphones Headphones(9.30)$11.20(4.20)$7.00

The analysis of additional income to be earned can be calculated by calculating additional…

Change in 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 capa Market research indicates that 29,400 additional Sun Sound and 32,300 additional Ear Bling headphones could be sold. The operating income by unit of product is as follow 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 $29.80 $46.50 (16.70) (26.00) $13.10 $20.50 (9.30) $11.20 Head Pops Inc. Analysis (6.00) $7.10 (2.70) $4.40 (4.20) $7.00 Prepare an analysis indicating the increase or decrease in total profitability if 29,400 additional Sun Sound and 32,300 additional Ear Bling headphones are produced and assuming that there is sufficient capacity for the additional production. Round your per unit answers to two decimal places.

Change in 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 capa Market research indicates that 29,400 additional Sun Sound and 32,300 additional Ear Bling headphones could be sold. The operating income by unit of product is as follow 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 $29.80 $46.50 (16.70) (26.00) $13.10 $20.50 (9.30) $11.20 Head Pops Inc. Analysis (6.00) $7.10 (2.70) $4.40 (4.20) $7.00 Prepare an analysis indicating the increase or decrease in total profitability if 29,400 additional Sun Sound and 32,300 additional Ear Bling headphones are produced and assuming that there is sufficient capacity for the additional production. Round your per unit answers to two decimal places.

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 58P: Polaris Inc. manufactures two types of metal stampings for the automobile industry: door handles and...

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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 32,100 additional Sun Sound 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 $11.50 (2.80) (4.30) $4.60 $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. Head…
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 33,600 additional Sun Sound and 36,600 additional Ear Bling headphones could be sold. The income from operations by unit of product is as follows: Sun SoundHeadphones Ear BlingHeadphones Sales price $34.10 $53.20 Variable cost of goods sold 19.10 29.80 Manufacturing margin $15.00 $23.40 Variable selling and administrative expenses 6.80 10.60 Contribution margin $8.20 $12.80 Fixed manufacturing costs 3.10 4.80 Income from operations $5.10 $8.00 Prepare an analysis indicating the increase or decrease in total profitability if 33,600 additional Sun Sound and 36,600 additional Ear Bling headphones are produced and sold, assuming that there is sufficient capacity for the additional production. Round…
Change in 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 30,600 additional Sun Sound and 34,000 additional Ear Bling headphones could be sold. The operating income by unit of product is as follows: Sun Sound Ear Bling Headphones Headphones Sales price $31.60 $49.30 Variable cost of goods sold (17.70) (27.60) Manufacturing margin $13.90 $21.70 Variable selling and administrative expenses (6.30) (9.90) Contribution margin $7.60 $11.80 Fixed manufacturing costs (2.80) (4.40) Operating income $4.80 $7.40 Prepare an analysis indicating the increase or decrease in total profitability if 30,600 additional Sun Sound and 34,000 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 places. Head Pops Inc.…
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 25,000 additional Sun Sound and 27,500 additional Ear Bling headphones could be sold. The operating income by unit of product is as follows: Sun Sound Ear Bling Headphones Headphones Sales price $28.00 $43.70 Variable cost of goods sold (15.70) (24.50) Manufacturing margin $12.30 $19.20 Variable selling and administrative expenses (5.60) (8.70) Contribution margin $6.70 $10.50 Fixed manufacturing costs (2.50) (3.90) Operating income $4.20 $6.60
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: Sun Sound Ear Bling Headphones Headphones Sales price $140.00 $125.00 Variable cost of goods sold (78.40) (70.00) Manufacturing margin $61.60 $55.00 (28.00) Variable selling and administrative expenses (25.00) Contribution margin $33.60 $30.00 Fixed manufacturing costs (14.00) (12.50) $19.60 $17.50 Operating income 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 and sold, assuming that there is sufficient capacity for the additional production. Round your per unit answers to two decimal…
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Problems Saved Help Muzzillo Corporation has provided the following contribution format income statement. All questions concern situations that are within the relevant range. Sales (3,350 units) Variable expenses Contribution margin Fixed expenses Net operating income. Required: $ 224,450 164,150 60,300 57,100 $ 3,200 a. If the selling price increases by $4.00 per unit and the sales volume decreases by 300 units, what would be the estimated net operating income? b. If the variable cost per unit increases by $6.00, spending on advertising increases by $3,700, and unit sales increase by 2,010 units, what would be the estimated net operating income?
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Scarce resource; discontinued product lines; negative contribution marginThe officers of Bardwell Company are reviewing the profitability of the company’s four products and the potential effects of several proposals for varying the product mix. The following is an excerpt from the income statement and other data. Total Product P Product Q Product R Product S Sales $187,800 $30,000 $54,000 $37,800 $66,000 Cost of goods sold (132,822) (14,250) (21,168) (41,904) (55,500) Gross profit $54,978 $15,750 $32,832 $(4,104) $10,500 Operating expenses (36,012) (5,970) (8,904) (8,478) (12,660) Income before taxes 18,966 $9,780 $23,928 $(12,582) $(2,160) Units sold 3,000 3,600 5,400 6,000 Sales price per unit $10.00 $15.00 $7.00 $11.00 Variable cost of goods sold 2.50 3.00 6.50 6.00 Variable operating expenses 1.17 1.25 1.00 1.20 Each of the following proposals is to be considered independently of the other proposals. Consider only the product changes stated in…
Scarce resource; discontinued product lines; negative contribution marginThe officers of Bardwell Company are reviewing the profitability of the company’s four products and the potential effects of several proposals for varying the product mix. The following is an excerpt from the income statement and other data. Total Product P Product Q Product R Product S Sales $187,800 $30,000 $54,000 $37,800 $66,000 Cost of goods sold (132,822) (14,250) (21,168) (41,904) (55,500) Gross profit $54,978 $15,750 $32,832 $(4,104) $10,500 Operating expenses (36,012) (5,970) (8,904) (8,478) (12,660) Income before taxes 18,966 $9,780 $23,928 $(12,582) $(2,160) Units sold 3,000 3,600 5,400 6,000 Sales price per unit $10.00 $15.00 $7.00 $11.00 Variable cost of goods sold 2.50 3.00 6.50 6.00 Variable operating expenses 1.17 1.25 1.00 1.20 Each of the following proposals is to be considered independently of the other proposals. Consider only the product changes stated in…