Obed corp makes three models of high performance cross

Reference no: EM13589654

Obed Corp. makes three models of high performance cross country ski machines. Current operating data are summarized below: Selling price per unit Variable cost per unit Monthly sales volume.

500 € 250 200 € 150 400 500,Fixed expenses per month total € 185.820.

Required:

(a) Calculate the contribution margin ratio for each product

(b) Calculate the firm's overall contribution margin ratio

(d) Calculate the firm's operating income

(e) Management is considering the elimination of the Ski3 model due to low sales

volume. As a result, total fixed expenses can be reduced by €60.000 per month. Assuming that this change would not affect the other models, would you recommend the elimination of the Ski3 model ?

Reference no: EM13589654

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