Ask an expertMuscle Beach Incorporated makes three models of high-performance weight-training benches. Current operating data...
50.1K
Verified Solution
Question
Accounting
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.
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.
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Best
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.