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 place. Head Pops Inc. Analysis Sun Sound Headphones Ear Bling Headphones Unit volume increase x Contribution margin per unit Increase in profitability

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 place. Head Pops Inc. Analysis Sun Sound Headphones Ear Bling Headphones Unit volume increase x Contribution margin per unit Increase in profitability

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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Sales Needed to Earn Target Income Chillmax Company plans to sell 3,500 pairs of shoes at 60 each in the coming year. Variable cost is 35% of the sales price; contribution margin is 65% of the sales price. Total fixed cost equals 78,000 (includes fixed factory overhead and fixed selling and administrative expense). Required: 1. Calculate the sales revenue that Chillmax must make to earn operating income of 81,900 by using the point in sales equation. 2. Check your answer by preparing a contribution margin income statement based on the sales dollars calculated in Requirement 1.
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 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.…
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-/1 View Policies Current Attempt in Progress Bramble Corp. sells two types of computer hard drives. The sales mix is 30% ( Q-Drive ) and 70% (Q-Drive Plus). Q-Drive has variable costs per unit of $60 and a selling price of $120. Q-Drive Plus has variable costs per unit of $90 and a selling price of $180. The weighted-average unit contribution margin for Bramble is O $120. O $60.0. O $81. O $69.0. TAvthaalkand iadis hp
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CVP analysis—what-if questions; breakeven Monterey Co. makes and sells a single product. The current selling price is $15 per unit. Variable expenses are $9 per unit, and fixed expenses total $27,000 per month. Required:(Unless otherwise stated, consider each requirement separately.)a. Calculate the break-even point expressed in terms of total sales dollars and sales volume.b. Calculate the margin of safety and the margin of safety ratio. Assume current sales are $75,000.c. Calculate the monthly operating income (or loss) at a sales volume of 5,400 units per month.d. Calculate monthly operating income (or loss) if a $2 per unit reduction in selling price results in a volume increase to 8,400 units per month.e. What questions would have to be answered about the cost–volume–profit analysis simplifying assumptions before adopting the price cut strategy of part d ?f. Calculate the monthly operating income (or loss) that would result from a$1 per unit price increase and a $6,000 per month…
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…
CVP analysis—what-if questions; sales mix issue Miller Metal Co. makes asingle product that sells for $32 per unit. Variable costs are $20.80 per unit, and fixed costs total $47,600 per month.Required:a. Calculate the number of units that must be sold each month for the firm to break even.b. Assume current sales are $160,000. Calculate the margin of safety and the margin of safety ratio.c. Calculate operating income if 5,000 units are sold in a month.d. Calculate operating income if the selling price is raised to $33 per unit, advertising expenditures are increased by $7,000 per month, and monthly unit sales volume becomes 5,400 units.e. Assume that the firm adds another product to its product line and that the new product sells for $20 per unit, has variable costs of $14 per unit, and causes fixed expenses in total to increase to $63,000 per month. Calculate the firm’s operating income if 5,000 units of the original product and 4,000 units of the new product are sold each month. For…
Please do not give solution in image format thanku
Please do not give solution in image format thanku