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Muscle Beach Inc. makes three models of high-performance weight-training benches. Current operating data are summarized here: Selling price per unit Contribution surgin per unit Monthly
Muscle Beach Inc. makes three models of high-performance weight-training benches. Current operating data are summarized here: Selling price per unit Contribution surgin per unit Monthly sales volume-units Fixed expenses per month Megle $ 138 Proforce $ 293 Power $ 197 43 3,020 74 2,010 55 1.070 Total of $314, 100 a. Calculate the contribution margin ratio of each product b. Calculate the firm's overall contribution margin ratio. c. Calculate the firm's monthly breakeven point in sales dollars. d. Calculate the firm's monthly operating Income. 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 $265,070 per month. Assuming that this change would not affect the other models, what would be the effect on net operating income. Would you recommend the elimination of the ProForce model? f. Assume the same facts as in requirement e-1. Assume also that the sales volume for the PowerGym model will increase by 510 units per month if the ProForce model is eliminated. What would be the effect on operating income. Would you recommend eliminating the ProForce model? Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Required El Required E2 Required F1 Required F2
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