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 Yonthly sales volume-units Fixed expenses per month legaluscle Povery ProForce $ 140 $ 204 $ 294 42 77 55 2,950 1,950 980 Total of $329,700 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 $285,540 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 505 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 Required D Required El Required E2 Required F1 Required F2 Calculate the firm's overall contribution margin ratio. (Round your answer to 1 decimal place.) Overall CM y una de sumed here, Selling price per unit Contribution are per unit Monthly sales voluerunt Fixed expenses personth Merci Poids ProForce $ 140 3 204 3291 12 77 55 2.950 1.90 980 Total of $329,700 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 $285,540 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? 1. Assume the same facts as in requiremente-1 Assume also that the sales volume for the PowerGym model will increase by 505 units per month if the Proforce model is eliminated. What would be the effect on operating income. Would you recommend eliminating the ProForce moder? Complete this question by entering your answers in the tabs below. Required A Required B Required 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) Breveri porn elity the elimination of the ProForce model due to its low sales volume and low contribution margin ratio. As result, total fixed expenses can be reduced to $285,540 per month. Assuming that this change would not affect the other models, hat would be the effect on net operating income. Would you recommend the elimination of the ProForce model? ssume the same facts as in requirement e-1. Assume also that the sales volume for the PowerGym model will increase by 505 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 Required D Required El Required E2 Required F1 Required F2 Calculate the firm's monthly operating income. 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 foxed expenses can be reduced to $285 540 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? 1. Assume the same facts as in requiremente-1. Assume also that the sales volume for the PowerGym model will increase by 505 units per month of 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 Required D Required ET 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 $285,540 per month. Assuming that this change would not affect the other models, what would be the effect on net operating income. Netoperate income uvems monthly breakeven point in sales dollars. alculate the firm's monthly operating income Management is considering the elimination of the Proforce model due to its low sales volume and low contribution margin ratio. As result, total fixed expenses can be reduced to $285.540 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? Assume the same facts as in requirement e-1 Assume also that the sales volume for the PowerGym model will increase by 505 inits per month of 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. Reruired A Required Required Required D Required El Required E2 Required FI 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 $285,540 per month. Assuming that this change would not affect the other models, would you recommend the elimination of the Proforce model? alculate the contribution margin ratio of each product alculate the firm's overall contribution margin ratio alculate the firm's monthly breakeven point in sales dollars Calculate the firm's monthly operating income Management is considering the elimination of the ProForce model due to its low sales volume and low contribution margin ratio. As result, total fixed expenses can be reduced to $285,540 per month. Assuming that this change would not affect the other models, vhat would be the effect on net operating income. Would you recommend the elimination of the ProForce model? Assume the same facts as in requirement e-1. Assume also that the sales volume for the PowerGym model will increase by 505 units per month of 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 Required D Required E1 Required E2 Required F1 Required F2 Assume the same facts as in requirement e-1. Assume also that the sales volume for the PowerGym model will increase by SOS units per month if the ProForce model is eliminated. Would you recommend eliminating the Proforce model?
