Problem 2 Blues Company produces and sells 3 styles of office chairs - Standard, Deluxe and Premium. Below is an analysis of the Operating Profit report, which is prepared in a Contribution Margin format. Standaro Deluxe Premiumm Total $171.65 $678,000 Selli Sales Less: variable costs Contribution margin Less: fixed expenses Net operating income $134.40 $336,000 $187.50 295.38 $150,000 $192,000 ce per unit $264,000 147 848 $70,000 $104,000 38.441 $438,000 47.311 65 In examining the report, company management contemplates eliminating Deluxe and increasing investment in one of the other product lines either Standard or Premium. You have been asked to advise management concerning this decision Required Assuming fixed costs are allocated to each Product line based on unit sales: 1. Compute the Break-even in product sales for each product line a. As currently presented b. For Standard and Premium, assuming they eliminate the Deluxe product line 2. Compute Operating Leverage for Standard and Premium a. As currently presented b. line? Please explain your answer including any relevant analysis supporting that answer Premium? Please explain your answer including any analysis supporting that answer Assuming they eliminate the Deluxe product line 3. Using your analysis from parts 1 & 2, do you agree that the company should eliminate the Deluxe product 4. If the company eliminates Deluxe, which product line should they increase their investment in, Standard or