Question
b. Calculate the firm's overall contribution margin ratio. c. Calculate the firm's monthly break-even point in sales dollars d. Calculate the firm's monthly operating income.
b. Calculate the firm's overall contribution margin ratio.
c. Calculate the firm's monthly break-even point in sales dollars
d. Calculate the firm's monthly operating income.
e-1. 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 $266,790 per month. Assuming that this change would not affect the other models, what would be the effect on net operating income.
f-1. Assume the same facts as in requirement e-1. Assume also that the sales volume for the PowerGym model will increase by 504 units per month if the ProForce model is eliminated. What would be the effect on operating income.
Muscle Beach, Inc., makes three models of high-performance weight-training benches. Current operating data are summarized here: MegaMuscle PowerGym ProForce S 291 Selling price per unit Contribution margin per unit Monthly sales volume-units Fixed expenses per month 5 149 41 3,000 5 202 75 1.910 58 1,070 Total of $319,600Step by Step Solution
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