Instructions Head Pops Inc, manufactures two models of solar-powered, noise-canceling headphones: Sun Sound and Ear...
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Instructions 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 20,000 additional Sun Sound and 40,000 additional Ear Bling headphones could be sold. The income from operations by unit of product is as follows: Sun Sound Headphones $155.00 Ear Bling Headphones $135.00 2 Sales price 3 Variable cost of goods sold 74.40 55.00 4 Manufacturing margin $80.60 $80.00 24.00 26.00 5 Variable selling and administrative expenses 6 Contribution margin $56.60 18.00 $54.00 12.00 7. Fixed manufacturing costs $38.60 $42.00 8 Income from operations Profitability Analysis Prepare an analysis indicating the increase or decrease in total profitability ir 20,000 additional Sun Sound and 40,000 additional Ear Bing headphones are produced and sold, assuming that there is sufficient capacity for the additional production. Round your per-unit answers to two decimal places. Sun Sound Headphones Ear Bling Headphones Unit volume increase Contribution margin per unit Increase in profitability


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