Question
CVP application-eliminate product from operations? Muscle Beach, Inc., makes three models of high-performance weight-training benches. Current operating data are summarized here: MegaMuscle PowerGym Proforce Selling
CVP application-eliminate product from operations? Muscle Beach, Inc., makes three models of high-performance weight-training benches. Current operating data are summarized here: MegaMuscle PowerGym Proforce Selling price per unit $ 170 $ 220 $ 310 Contribution margin per unit 51 77 62 Monthly sales volume-unit 4,000 3,000 1,000 Fixed expenses per month Total of $468,000 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 income.
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