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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.
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 30,300 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 Sun Sound Headphones Headphones $30.70 $47.90 Sales price Variable cost of goods sold 17.20 26.80 Manufacturing margin S13.50 $21.10 Variable selling and administrative 6.10 9.60 expenses Contribution margin $7.40 $11.50 Fixed manufacturing costs 2,80 4,30 $4.60 $7.20 Income from operations sufficient capacity for Prepare an analysis indicating the increase or decreasse in total profitability 30,300 additional Sun Sound and 33,000 additional Ear Bling headphones are produced and sold, assuming that there the additional production. Round your per unit answers to two decimal place. Head Pops Inc. Analysis Sun Sound Headphones Ear Bling Headphones Unit yolume increase x Contribution margin per unit profitability Increase
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