Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Change in Sales Mix and Contribution Margin Head Pops Inc. manufactures two models of solar-powered, noise-canceling headphones: Sun Sound and Ear Bling Market research indicates
Change in Sales Mix and Contribution Margin Head Pops Inc. manufactures two models of solar-powered, noise-canceling headphones: Sun Sound and Ear Bling Market research indicates that 28,000 additional Sun Sound and 30,000 additional Ear Bling headphones could be follows: Ear Bling Sun Sound Headphones Headphones Sales price $125.00 $140.00 78.40 70.00 Variable cost of goods sold Manufacturing margin $61.60 $55.00 Variable selling and administrative expenses 28.00 25.00 Contribution margin $33.60 $30.00 Fixed manufacturing costs 14.00 12.50 $19.60 $17.50 Income from operations Prepare an analysis indicating the increase or decrease in total profitability if 28,000 additional Sun Sound and 30, assuming that there is sufficient capacity for the additional production. Round your per unit answers to two decima Head Pops Inc. Analysis Sun Sound Headphones Ear Bling Headphones 33.60 X 30.00 Unit volume increase 28,000 X X 900,000 x Contribution margin per unit 940,800 900,000 Increase in profitability
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started