Sun Sound Ear Bling Headphones Headphones Sales price $32.10 $50.10 Variable cost of goods sold (18.00) (28.10) Manufacturing margin $14.10 $22.00 Variable selling and administrative expenses (6.40) (10.00) Contribution margin $7.70 $12.00 Fixed manufacturing costs (2.90) (4.50) Operating income $4.80 $7.50 Prepare an analysis indicating the increase or decrease in total profitability if 32,400 additional Sun Sound and 36,000 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
Sun Sound Ear Bling Headphones Headphones Sales price $32.10 $50.10 Variable cost of goods sold (18.00) (28.10) Manufacturing margin $14.10 $22.00 Variable selling and administrative expenses (6.40) (10.00) Contribution margin $7.70 $12.00 Fixed manufacturing costs (2.90) (4.50) Operating income $4.80 $7.50 Prepare an analysis indicating the increase or decrease in total profitability if 32,400 additional Sun Sound and 36,000 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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
100%
![Sun Sound
Ear Bling
Headphones Headphones
Sales price
$32.10
$50.10
Variable cost of goods sold
(18.00)
(28.10)
Manufacturing margin
$14.10
$22.00
Variable selling and administrative expenses
(6.40)
(10.00)
Contribution margin
$7.70
$12.00
Fixed manufacturing costs
(2.90)
(4.50)
Operating income
$4.80
$7.50
Prepare an analysis indicating the increase or decrease in total profitability if 32,400 additional Sun Sound and 36,000 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
$
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Transcribed Image Text:Sun Sound
Ear Bling
Headphones Headphones
Sales price
$32.10
$50.10
Variable cost of goods sold
(18.00)
(28.10)
Manufacturing margin
$14.10
$22.00
Variable selling and administrative expenses
(6.40)
(10.00)
Contribution margin
$7.70
$12.00
Fixed manufacturing costs
(2.90)
(4.50)
Operating income
$4.80
$7.50
Prepare an analysis indicating the increase or decrease in total profitability if 32,400 additional Sun Sound and 36,000 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
$
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