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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 margin 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 margin per unit Monthly sales volume-units Fixed expenses per month. MegaMuscle $ 141 PowerGym $ 200 ProForce $300 42 3,060 74 1,950 Total of $326,900 55 980 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 $282,260 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 497 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 E1 Required E2 Required F1 Required F2 Calculate the firm's monthly breakeven point in sales dollars. (Round your intermediate calculations to 1 decimal place. Round your final answer to the nearest whole number) Breakeven point Muscle Beach Inc. makes three models of high-performance weight-training benches. Current operating data are summarized here: Selling price per unit Contribution margin per unit Monthly sales volume-units Fixed expenses per month MegaMuscle $ 141 PowerGym 42 3,060 $ 200 74 1,950 Total of $326,900 ProForce $300 55 980 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 $282,260 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 497 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 E1 Required E2 Required F1 Required F2 Calculate the firm's monthly operating income. Operating income < Required C Required E1 > www Muscle Beach Inc. makes three models of high-performance weight-training benches. Current operating data are summarized here: Selling price per unit. Contribution margin per unit Monthly sales volume-units Fixed expenses per month MegaMuscle $ 141 PowerGyn $ 200 ProForce $300 42 74 3,060 1,950 Total of $326,900 55 980 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 $282,260 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 497 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 E1 Required E2 Required F1 Required F2 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 $282,260 per month. Assuming that this change would not affect the other models, what would be the effect on net operating income. Net operating income will decrease by Muscle Beach Inc. makes three models of high-performance weight-training benches. Current operating data are summarized here: Selling price per unit Contribution margin per unit Monthly sales volume-units Fixed expenses per month. MegaMuscle PowerGym $ 200 $ 141 ProForce $300 42 74 3,060 1,950 Total of $326,900 55 980 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 $282,260 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 497 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 D Required C Required E1 Required E2 Required F1 Required F2 Required B Assume the same facts as in requirement e-1. Assume also that the sales volume for the PowerGym model will increase by 497 units per month if the ProForce model is eliminated. What would be the effect on operating income. Net operating income will increase by
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