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Current operating data are summarized here

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Reference no: EM13912420

Muscle Beach, Inc., makes three models of high performance weight training benches. Current operating data are summarized here:

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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 break even point in sales dollars.
d. Calculate the firm's monthly operating income.
e. Management is considering the elimination of the Pro Force model due to its low sales volume and low contribution margin ratio. As a result, total fixed expenses can be reduced to $420,000 per month. Assuming that this change would not affect the other models, would you recommend the elimination of the Pro Force model? Explain your answer.
f. Assume the same facts as in part e. Assume also that the sales volume for the Power Gym model will increase by 500 units per month if the Pro Force model is eliminated. Would you recommend eliminating the Pro Force model? Explain your answer. 

Reference no: EM13912420

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Current operating data are summarized here : Muscle Beach, Inc., makes three models of high performance weight training benches. Current operating data are summarized here:
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