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 $32,700$ additional Sun Sound and $36,000$ additional Ear Bling headphones could be sold. The operating income by unit of product

is as follows:

Prepare an analysis indicating the increase or decrease in total profitability if $32,700$ additional Sun Sound and $36,000$ 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 places.

Head Pops Inc.

Analysis