Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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
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 25,000 additional Sun Sound and 33,000 additional Ear Bling headphones could be sold. The income from operations by unit of product is as follows: Ear Bling Headphone Sun Sound Headphone $130.00 73.40 $56.60 24.00 $32.60 14.00 $18.60 $145.00 70.00 $75.00 28.00 47.00 10.00 $37.00 2 Sales price Vaiable cost of goods sold 4Manufacturing margin 5 Variable selling and administrative expenses Contribution margin Fixed manufacturing costs Income from operations 7 8 Prepare an analysis indicating the increase or decrease in total profitability if 25,000 additional Sun Sound and 33,000 additional Ear Bling headphones are produced and sold, assuming that there is sufficient capacity for the additional production Round your ner-unit answers to two decimal nlaces
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