Muscle Beach Inc. makes three models of high-performance weight-training 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 $270,000 per month. Assuming that this change would not affect the other models, would you recommend the elimination of the ProForce model? Explain your answer.

f. Assume the same facts as in part e. Assume also that the sales volume for the PowerGym model will increase by 500 units per month if the ProForce model is eliminated. Would you recommend eliminating the ProForce model? Explain your answer.

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PowerGym ProForce MegaMuscle $ 140 42 3,000 Selling price per unit Contribution margin per unit Monthly sales volume-units Fixed expenses per month $ 290 58 1,000 $ 220 77 2,000 Total of $320,000