The Controller of Bright Sounds has prepared the following product profitability report for management, using activity-based costing methods for allocating both the factory overhead and the marketing expenses. As such, the controller has confidence in the accuracy of this report.

	Wireless Headphones	Home Cinema Surround Sound Room Speakers	Wireless Speakers	Total
Sales	$1,000,000	$1,800,000	$1,500,000	$4,300,000
Cost of Goods Sold	($850,000)	($1,075,000)	($725,000)	($2,650,000)
Gross Profit	$150,000	$725,000	$775,000	$1,650,000
Marketing Expenses	($125,000)	($650,000)	($300,000)	($1,075,000)
Operating Income	$25,000	$75,000	$475,000	$575,000

In addition, the controller interviewed the vice president of marketing, who provided the following insight into the company's three products:

The Home Cinema Surround Sound Room Speakers are an older product that is highly recognized in the marketplace.

The wireless speakers are a new product that was just recently launched.

The wireless headphones are popular and the product is well received by customers, yet the least profitable at this point.

Based on the information provided:

1. Calculate the ratio of gross profit to sales and the ratio of income from operations to sales for each product

(ratio: Gross Profit/Sales; Income from Operations/Sales)

2. Compose the discussion about using the product profitability report and the calculations in (1) to make recommendations to management with respect to strategies for the three products.

-Examine the costs.

-Examine the marketing expenses.

-Should you get rid of one product or continue with all?

Please go into detail and give substantial informative answers to the questions