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1. CVP application estimate product from operation? Body sculpture, Inc., makes three models of high-performance weight-training benches. Current operating data are summarized here. Megamuscle Powergym
1. CVP application estimate product from operation? Body sculpture, Inc., makes three models of high-performance weight-training benches. Current operating data are summarized here. Megamuscle Powergym Proforce Selling price per unit $ 280 $ 400 $ 580 Contribution margin per unit 84 154 116 Monthly sales volume units 6,000 4,000 2,000 Fixed expenses per month Total of $1,280,000 Required: a. Calculate the contribution margin ratio of each product b. Calculate the firms overall contribution margin ratio. c. Calculate the firms monthly break-even point in sales dollars. d. Calculate the firms monthly operating expense. e. Management is considering the elimination of the Proforce model due to its low sales volume and low contribution margin ratio. As a result, total fixed expenses can be reduced to $1,080,000 per month. Assuming that the change would not affect the other models, would you recommend the elimination of the ProForce model? Explain your answer. f. Assume the same facts as in part e. Assume also that the sales volume for the ProGym model will increase by 1,000 units per month if the ProFore model is eliminated. Would you recommend eliminating the ProForce model? Explain your
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