Noise Candy Inc. manufactures two models of noise- canceling headphones: No Noise and Silent Candy models. The company is operating at less than full capacity. Market research indicates that 35,700 additional No Noise and 39,600 additional Silent Candy headphones 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 35,700 additional No Noise and 39,600 additional Silent Candy headphones are produced and sold, assuming that there is sufficient capacity for the additionalproduction.

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No Noise Headphone Headphone Silent Candy Sales price Variable cost of goods sold Manufacturing margin Variable selling and administrative expenses Contribution margin Fixed manufacturing costs Income from operations 60.00 33.60 $26.40 12.00 1440 6.00 5 840 84.00 47.00 37.00 16.80 20.20 $11.70