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

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Question
eBook
Sales price
Variable cost of goods sold
Manufacturing margin
Variable selling and administrative expenses
Contribution margin
Fixed manufacturing costs
Operating income
MHW #9 Chapter 21
Unit volume increase
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:
x Contribution margin per unit
Increase in profitability
Theck My Work
v2.cengagenow.com
Head Pops Inc.
Analysis
Sun Sound
Headphones
$140.00
(78.40)
$61.60
(28.00)
$33.60
(14.00)
$19.60
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 place.
000
C CengageNOWv2 | Assignments | Overview
Ear Bling
Headphones
$125.00
(70.00)
$55.00
(25.00)
$30.00
(12.50)
$17.50
Sun Sound Headphones Ear Bling Headphones
000
+ 88
C Online teaching and learning resource from Cengage L
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Transcribed Image Text:eBook Sales price Variable cost of goods sold Manufacturing margin Variable selling and administrative expenses Contribution margin Fixed manufacturing costs Operating income MHW #9 Chapter 21 Unit volume increase 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: x Contribution margin per unit Increase in profitability Theck My Work v2.cengagenow.com Head Pops Inc. Analysis Sun Sound Headphones $140.00 (78.40) $61.60 (28.00) $33.60 (14.00) $19.60 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 place. 000 C CengageNOWv2 | Assignments | Overview Ear Bling Headphones $125.00 (70.00) $55.00 (25.00) $30.00 (12.50) $17.50 Sun Sound Headphones Ear Bling Headphones 000 + 88 C Online teaching and learning resource from Cengage L Previous Next
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