Airwave Audio Company manufactures Model DL headphones and Model XL headphones and is operating at less than full capacity. Market research indicates that 24,800 additional Model DL and 27,500 additional Model XL could be sold. The income from operations by unit of product is as follows:

Prepare an analysis indicating the increase or decrease in total profitability if 24,800 additional Model DL and 27,500 additional Model XL are produced and sold, assuming that there is sufficient capacity for the additional production.

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Sales price Variable cost of goods sold Manufacturing margin Variable selling and administrative expenses Contribution margin Fixed manufacturing costs Income from operations Model DL Headphone 35.00 19.60 $15.40 7.00 8.40 3.20 5.20 Model XL Headphone %56.00 31.40 $24.60 11.20 $13.40 5.10 S 8.30