EX 7-11 Change in contribution margin Obj. 4 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 28,000 additional Sun Sound and 30,000 additional Ear Bling headphones could be sold. The operating income by unit of product is as follows: Sun Sound Ear Bling Headphones Headphones Sales price . $140.00 $125.00 Variable cost of goods sold ..... (78.40) (70.00) Manufacturing margin ....... $ 61.60 $ 55.00 Variable selling and administrative expenses ...... (28.00) (25.00) Contribution margin. ....... $ 33.60 $ 30.00 Fixed manufacturing costs........... (14.00) (12.50) Operating income .......... $ 19.60 $ 17.50 Prepare an analysis indicating the increase or decrease in total profitability if 28,000 additional Sun Sound and 30,000 additional Ear Bling headphones are produced and sold, assuming that there is sufficient capacity for the additional production.EX 1-1 Inventoryr valuation under absorption costing and 1Iiirariable costing Dhi. 1 At the end of the first year of operations, 18,0 units remained in the finished goods inventory. The unit manufacturing costs during the year were as follows: Direct materials 525 Direct labor 213 Fixed Factor)r overhead 3U Variable factory,r overhead 5 Determine the cost of the finished goods inventory reported on the balance sheet under (a) the absorption costing concept and {b} the variable costing concept