Change in Sales Mix and Contribution Margin

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 17,600 additional Sun Sound and 19,500 additional Ear Bling headphones could be sold. The income from operations by unit of product is as follows:

	Sun Sound Headphones	Ear Bling Headphones
Sales price	$28.20		$44.00
Variable cost of goods sold	15.80		24.60
Manufacturing margin	$12.40		$19.40
Variable selling and administrative expenses	5.60		8.80
Contribution margin	$6.80		$10.60
Fixed manufacturing costs	2.50		4.00
Income from operations	$4.30		$6.60

Make the analysis indicating the increase or decrease in total profitability if 17,600 additional Sun Sound and 19,500 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.

	Sun Sound Headphones	Ear Bling Headphones
Unit volume increase	fill in the blank ________	fill in the blank ________
x Contribution margin per unit	$ fill in the blank _______	$ fill in the blank _____
Increase in profitability	$ fill in the blank ________	$ fill in the blank ______