Ask an expertMuscle Beach Incorporated makes three models of highperformance weighttraining benches. Current operating data are
summarized here:
Required:
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 $ 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 Assume also that the sales volume for the PowerGym model will increase by 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.
Calculate the contribution margin ratio of each product.
Note: Round your answers to decimal place.
