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Change in and Contribution Margin Head Pops Inc, manufactures two models of solar powered, noise...

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Accounting

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Change in and Contribution Margin Head Pops Inc, manufactures two models of solar powered, noise canceling headphonest Sun Sound and Ear Bling models. The company is operating at less than full capacity Market research indicates that 24,600 additional sun sound and 27,100 additional Ear Bing headphones could be sold. The operating income by unit of product is as follows: Sun Sound Ear Bling Headphones Headphones Sales price $39.00 562.10 Variable cost of goods sold (22.30) (34.80) Manufacturing margin $17.50 $27.30 Variable selling and administrative expenses (0.00) (12.40) Contribution margin $9.50 $14.90 Faxed manufacturing costs (3.60) (5.60) Operating Income $5.90 $9.30 Prepare an analysis indicating the increase or decrease in total profitability 24,600 additional Sun Sound and 27.100 additional Ear Bling headphones are produced and sold, asuming 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 Contribution margin per unit Increase in profitability

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