O ezto.mheducation.com/hm.tpx 3000 points Problem 12-26 CVP application-eliminat
ID: 2570323 • Letter: O
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O ezto.mheducation.com/hm.tpx 3000 points Problem 12-26 CVP application-eliminate product from operations? LO 8, 9,10, 11 Muscle Beach, Inc., makes three models of high-performance weight-training benches. Current operating data are summarized here orce S 135 Contribution margin per unit Monthly sales volume-units Fixed expenses per month $ 190 79 2,070 $ 291 57 900 2,930 even p Total of $322,700 a. Calculate the contribution margin ratio of each product. (Round your answers to 1 decimal place.) Answer is complete and correct. MegaMuscle PowerGym orce margin 326 1 % 41.6% 19.6 % b. Calculate the firm's overall contribution margin ratio. (Round your answer to 1 decimal place.) Answer is complete and correct. 32.7%Explanation / Answer
F(1)
Contribution of megamuscle = $ 44 per unut X 2,930 units = $ 128,920
Contribution of powergym = $ 79 per unit X (2,070+ 493 units) =$ 202,477
New fixed cost = $ 278,350
Net profit = 128,920+ 202,477-278,350 = 53,047
Increase in profit = 53,047-21,050 = 31,997
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