Question: I need help with this one Obed Corp., makes three models of high performance cross country ski machines. Current operating data are summarized below: Fixed
I need help with this one Obed Corp., makes three models of high performance cross country ski machines. Current operating data are summarized below: Fixed expenses per month total $185,820 (a) Calculate the contribution margin ratio for each product. (b) Calculate the firm's overall contribution margin ratio. (c) Calculate the firm's break-even point in sales dollar. (d) Calculate the firm's operating income. (e) Management is considering the elimination of the OurSki 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 OurSki model?
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