K Change in Contribution Margin 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 32,700 additional Sun Sound and 35,600 additional Ear Bling headphones could be sold. The operating income by unit of product is as follows: Sales price Variable cost of goods sold Manufacturing margin Variable selling and administrative expenses Contribution margin Fixed manufacturing costs Operating income Head Pops Inc. Analysis Sun Sound Headphones $40.70 (22.80) $17.90 Line Item Description Unit volume increase x Contribution margin per unit Increase in profitability (8.10) $9.80 (3.70) $6.10 Prepare an analysis indicating the increase or decrease in total profitability if 32,700 additional Sun Sound and 35,600 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 places. Ear Bling Headphones $63.50 (35.60) $27.90 (12.70) $15.20 (5.70) $9.50 Sun Sound Ear Bling Headphones Headphones

Change in Contribution Margin Head Pops inc. manufactures two models of solar-powered, nolse-canceling headphones: Sun Sound and Ear Bling models. The company is operating at less than full capacity. Market research indicates that 32,700 additional Sun Sound and 35,600 additional Ear Bling headphones could be sold. The operating income by unit of product is as follows: Prepare an analysts indicating the increase or decrease in total profitablity if 32,700 additionat Sun Sound and 35,600 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 places