value 5.00 points Musdle Beach, Inc., makes three models of high-performance wei
ID: 2430070 • Letter: V
Question
value 5.00 points Musdle Beach, Inc., makes three models of high-performance weight training benches Current operating data are summarized here MegaMuscle PowerGym ProForoe s 210 Seling prioe per unit Contribution margin per unit 3 144 S 203 58 1.000 75 300 Total of 1,980 Total of $315.600 Foxed expenses per month a. Calculate the contribution margin ratio of each product (Round your answers to 1 decimal place.j the firm's overall contribution margin ratio (Round your answer to 1 decimal place.) c. Calculate the tirm's monthly break-even point in sales dollars. (Round your intermediate calculations to 1 decimal place.) d. Calculate the frm's morthly operating income. c-1. Management is considering the elimination of the Proforce model due to its low sales volume and low contribution magin ratio. As a resut tota e-2. Viould you recornmand She eirination of the PhoForce model? O Type here to searchExplanation / Answer
a) Megal Muscle Power Gym Proforce
Sales/unit 144 210 293
Contribution/unit 44 75 58
Contribution margin 44/144 75/210 58/293
(Contribution/sales) 30.55% 35.72% 19.73%
b) Overall Contribution Margin
Sales * Contribution Margin/Total Sales
= (44*3090 + 75*1960 + 58*1000)/(144*3090 + 210*1960 + 293*1000)
= 340960/1149560
= 29.65%
c) BEP
Megal Muscle Power Gym Proforce
Sales/unit 144 210 293
Contribution/unit 44 75 58
p/v Ratio 30.55% 35.72% 19.73%
(Contribution/sales)
d) INCOME STATEMENT
Megal Muscle Power Gym Proforce
Sales 144 210 293
Contribution 44 75 58
Variable Cost/unit 100 135 235
Total Contribution 135960 147000 58000
Fixed Cost 315000 315000 315000
Profit/(loss) (179040) ( 168000) (257000)
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