Body Sculpture

Body Sculpture, Inc., makes three models of high-performance weight-training benches. Current operating data are summarized here:
MegaMuscle PowerGym ProForce
Selling price per unit $144 $208 $297
Contribution margin per unit 44 74 59
Monthly sales volume—units 3,030 2,090 1,040
Fixed expenses per month Total of $ 327,400

Requirement 1:
Calculate the contribution margin ratio of each product. (Round your answers to 1 decimal place.
Contribution margin ratio
Mega Muscles…….%
PowerGym……….%
ProForce…….%

Requirement 2:
Calculate the firm’s overall contribution margin ratio. (Round your answer to 1 decimal place. Omit the “%” sign in your response.)
Over all CM ratio……%

Requirement 3:
Calculate the firm’s monthly break-even point in sales dollars. (Round your answer to the nearest dollar amount. Omit the “$” sign in your response.)
Break even point $

Requirement 4:
Calculate the firm’s monthly operating income(loss). (Negative amount should be indicated by a minus sign. Omit the “$” sign in your response.)
Operating income(loss) $

Requirement 5:
(a) 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 $274,670 per month. Assuming that this change would not affect the other models, what would be the effect on net operating income. (Input the amount as positive value. Omit the “$” sign in your response.)
Net operating income will decrease by$

Requirement 6:
(a) Assume the same facts as in requirement 5. Assume also that the sales volume for the PowerGym model will increase by 500 units per month if the ProForce model is eliminated. What would be the effect on operating income. (Omit the “$” sign in your response.)
Net operating income will increase by $