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Obed Corporation makes three models of high performance cross country ski machines. Current operating data are summarized below: Fixed expenses per month total $185,820. Required:
Obed Corporation makes three models of high performance cross country ski machines. Current operating data are summarized below: Fixed expenses per month total $185,820. Required: a. Calculate the contribution margin ratio for each product. b. Calculate the firm's overall contribution margin ratio. c. Calculate the firm's breakeven point in sales dollar. d. Calculate the firm's operating income. e. Management is considering the elimination of the OurSki model due to low sales volume. As a result, total fixed expenses can be reduced by $60,000 per month. Assuming that this change would not affect the other models, calculate the net benefit or loss of eliminating the OurSki model. Complete this question by entering your answers in the tabs below. b. Calculate the firm's overall contribution margin ratio. Note: Round your answer to 2 decimal places. c. Calculate the firm's breakeven point in sales dollar. Note: Round your answer to the nearest whole dollar. d. Calculate the firm's operating income. e. Management is considering the elimination of the OurSki model due to low sales volume. As a result, total fixed expenses can be reduced by $60,000 per month. Assuming that this change would not affect the other models, calculate the net benefit or loss of eliminating the OurSki model
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