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Question

? v2.cengagenow.com/ilrn/takeAssignment takeAssignmentMando?invoker=assignments&takeAssignmentSessionLocator;=assignment take&inprogress-false; Chapter 20 Assignment eBook Calculator 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 18,400 additional Sun Sound and 20,400 additional Ear Bling headphones could be sold. The income from operations by unit of product is as follows: 1. EX.20-01.ALGO 2. PR.20-03B.ALGO 3. EX.20-04.ALGO Sun Sound Ear Bling Headphones Headphones Sales price Variable cost of goods sold Manufacturing margin Variable selling and administrative expenses Contribution margin Fixed manufacturing costs Income from operations $35.60 19.90 $15.70 7.10 $55.50 31.10 $24.40 4. EX.20-10ALGO 5. EX.20-20.ALGO 6. EX.20-11 ALGO 7. EX.20-12.ALGO 8. PR.20-05A BLANKSHEET 11.10 $8.60 3.20 S5.40 $13.30 5.00 $8.30 Prepare an analysis indicating the increase or decrease in total profitability if 18,400 additional Sun Sound and 20,400 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 Head Pops Inc. Analysis Sun Sound Headphones Ear Bling Headphones Unit volume increase x Contribution margin per unit Increase in profitability Check My Work Previous Next Progress: 6/8 items Assignment Score: 0.0% Email Instructor Save and Exit Submit Assignment for Grading

Explanation / Answer

Solution:

Head Pops Inc. Analysis Particulars Sun Sound Headphones Ear Biling Headphones Total Unit volume increase 18400 20400 Contribution margin per unit $8.60 $13.30 Increase in profitability $158,240.00 $271,320.00 $429,560.00
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