Sufficient capacity for the additional production

Assignment Help Financial Accounting
Reference no: EM131288192

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 20,000 additional Sun Sound and 40,000 additional Ear Bling headphones could be sold. The income from operations by unit of product is as follows: 1 Sun Sound Headphone Ear Bling Headphone 2 Sales price $155.00 $135.00 3 Variable cost of goods sold 74.40 55.00 4 Manufacturing margin $80.60 $80.00 5 Variable selling and administrative expenses 24.00 26.00 6 Contribution margin $56.60 $54.00 7 Fixed manufacturing costs 18.00 12.00 8 Income from operations $38.60 $42.00 Prepare an analysis indicating the increase or decrease in total profitability if 20,000 additional Sun Sound and 40,000 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.

Reference no: EM131288192

Questions Cloud

Risks for a manufacturing company : What are specific people risks for a manufacturing company -  what are specific financial risks for a manufacturing company and what are specific operational risks for a manufacturing company?
What is nation cash inflow or outflow on its current account : What is a nation's cash inflow or outflow on its current account given the following information? Which of the following best explains a potential disadvantage of leaving securities in street name?
Write the process to take an interview : Write the Process to take an Interview.Write a paper from your perspective, on how that process occurred, what happened, what the leader would do again, and what mistakes he or she may have made.
What is the amount of goods available for sale : At the beginning of the year, Kelly Sales had $2,400 of merchandise inventory. During the year, Kelly purchased $22,000 of inventory. At the end of the year, a count of the inventory revealed that Kelly had $1,600 of inventory on hand. What is the am..
Sufficient capacity for the additional production : 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 20,000 additional Sun Sound and 40,000 additional ..
Calculate the correlation between the two stocks : Calculate the standard deviation of monthly returns for each stock. Calculate the correlation between the two stocks. Excel Function: =correl(Stock 1 monthly returns array, Stock 2 monthly returns array)
Income from operations would increase other income : Income tax expense is shown as part of operating expenses. Income from operations would increase other income. Gains and losses on the sales of investments are included in nonoperating income (loss).
The most difficult decisions for the international marketer : Why is choosing the most appropriate market entry and development strategy one of the most difficult decisions for the international marketer?
What does providing too many choices do to a consumer : This Ted video was produced in 2003. While the general message is still the same and noteworthy, what new developments add to the way businesses and individuals spread ideas? (there are two MAJOR developments at a minimum)

Reviews

Write a Review

Financial Accounting Questions & Answers

  Calculate the return on assets and asset turnover

Bakely Company reports the following information (in millions) during a recent year: net sales, $12,093.8; net earnings, $358.0; total assets, ending, $5,987.0; and total assets, beginning, $5,466.2. (a) Calculate the (1) return on assets, (2) asset ..

  Qualitative factor to be considered in make-or-buy decision

Which of the following is not a qualitative factor to be considered in a make-or-buy decision? The break-even point is where...

  What type of working capital restructuring can the firm do

Calculate the firm's total operating cycle for 2005 and 2006 - what type of working capital restructuring can the firm do to turn around its performance?

  Which is the fourth year anne llc owned the property

which is the fourth year Anne LLC owned the property, the property was disposed of on January 15. What is the maximum depreciation expense?

  The net present value and internal rate of return methods

The net present value and internal rate of return methods of capital budgeting is superior to the payback method because they:

  Product or period costs

Please indicate whether these are product or period costs?

  Specific goal of human resource management

Which one is not the specific goal of human resource management?

  Discount amortization

On the first day of the fiscal year, a company issues a $3,000,000, 11%, five-year bond that pays semiannual interest of $165,000 ($3,000,000 × 11% × ½), receiving cash of $2,889,599. Journalize the first interest payment and the amortization of the ..

  Most important skills required of forensic accountants

List and explain the most important skills required of forensic accountants. How do these apply to you? Which ones are you missing? Which ones do you need further training on and why?

  Question a create a table of entities and activitiesb

question a. create a table of entities and activities.b. illustrate a context diagram.c. illustrate a physical data

  A firms income statement include the following data the

a firms income statement include the following data. the firms average tax rate was 20.cost of goods

  Prepare schedule showing sales and cash collections

A Sendai clothing wholesaler was preparing its sales budget for the first quarter of 20X8. Forecast sales are as follows (All values are in thousands of yen). Sales are 40% cash and 60% on credit. Fifty-five percent of the credit accounts are collect..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd