Which of the Online tes takeAssig Change in Sales Mix and Contribution Margin He

Question

Which of the Online tes takeAssig Change in Sales Mix and Contribution Margin Head Pops Inc. manufactures two models of solar Market research iscates that 23,100 8 otal Sun two models of solar-powered, noise-canceling headphones: Sun Sound and Ear Bling models. The company is operating at less than full capacity Sound and 25,200 addoonal Ear Bling headphones could be sold. The income from operations by unit of product is as Sun Sound Ear Bling Headphones Headphones 30.70$47.90 Sales price vaniable cost of goods sold Manufacturing margin Varlable selling and administrative $13.50 $21.10 Coneribution margi Pxed manafacturing cests Income from operations $7.4011.50 7.20 Prepare an analysis indicating the increase or decrease in total profitabilty if 23,300 addisional Sun Sound and 25,200 additional Ear Bing headphones are produced and assuming that there is sufficent capacity for the adsitional produetion. Round your per unt answers to teo decimal place ocrease in profitablity ?0

Explanation / Answer

Head Phone Inc. Sun Sound Headphone Ear Billing Headphone Unit Volume Increase 23100 25200 Contribution Margin/Unit $7.40 $11.50 Increase in Profilability $170,940.00 $289,800.00

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