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Vogel Co. produces three models of heating and air conditioning thermostat components. The following table summarizes data about each model: BV19 HV41 MV12 Selling price

Vogel Co. produces three models of heating and air conditioning thermostat components. The following table summarizes data about each model: BV19 HV41 MV12 Selling price per unit $ 36 $ 60 $ 30 Contribution margin per unit 12 18 6 Units sold per month 4,000 2,000 6,000 Total contribution margin $ 48,000 $ 36,000 $ 36,000 Direct fixed expenses 21,600 17,100 24,300 Segment margin $ 26,400 $ 18,900 $ 11,700 Allocated company fixed expenses 10,000 5,000 15,000 Operating income (loss) $ 16,400 $ 13,900 $ (3,300 ) Required: (a) On what basis does the $30,000 of company fixed expenses appear to be allocated? (b) Calculate the effect on total company net income if the MV12 model were discontinued. (Omit the "$" sign in your response.) The net income would by $ (c) Calculate the contribution margin ratio for each model. (Round your answers to 1 decimal place. Omit the "%" sign in your response.) BV19 HV41 MV12 Contribution margin ratio % %

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