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Book -16 10 10.ALGO 16 16.ALGO it Change in Sales Mix and Contribution Margina Head Pops Inc. manufactures two models of solar-powered, noise-canceling headphones:
Book -16 10 10.ALGO 16 16.ALGO it Change in Sales Mix and Contribution Margina 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 32,500 additional Sun Sound and 36,100 additional Ear Bling headphones could be sold. The operating income by unit of product is as follows: Sales price Sun Sound Ear Bling Headphones Headphones $41.101 $64.10 Variable cost of goods sold (23.00) (35.90) 1.ALGO Manufacturing margin $18.10 $28.20 Variable selling and administrative expenses (8.20) (12.80) Contribution margin $9.90 $15.40 ALGO Fixed manufacturing costs (3.70) (5.80) Operating income $6.20 $9.60 C Prepare an analysis indicating the increase or decrease in total profitability if 32,500 additional Sun Sound and 36,100 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 Check My Work 3 more Check My Work uses remaining Previrus
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