Muscle Beach, Inc., makes three models of high-performance weight-training benches. Current operating data are summarized here:

MegaMusclePowerGymProForceSelling price per unit$141 $194 $281 Contribution margin per unit 42 76 57 Monthly sales volumeunits 3,030 2,010 1,080 Fixed expenses per month Total of $315,600

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 $263,850 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 492 units per month if the ProForce model is eliminated. What would be the effect on operating income.