c. Use the report in (b) to determine the profit impact of eliminating the running shoes line, assuming no other changes.

If the running shoes line were eliminated, then the contribution margin of the product line would be eliminated and the fixed costs would not be eliminated. Thus, the profit of the company would actually decline by _________________ $. Management should keep the line and attempt to improve the profitability of the product by increasing prices, increasing volume, or reducing costs.

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Fixed manufacturing costs 3.30 5.10 Income from operations $5.40 $8.50 Prepare an analysis indicating the increase or decrease in total profitability if 19,900 additional Sun Sound and 21,900 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 Check My Work Screenshot saved The screenshot was added t OneDrive OneDrive Check My Work All work saved l 8:37 PM