Business, 22.04.2020 01:26, viktoria1198zz

PowerTrain Sports Inc. manufactures and sells two styles of All Terrain Vehicles (ATVs), the Mountain Monster, and Desert Dragon from a single manufacturing facility. The manufacturing facility operates at 100% of capacity.

The following per unit information is available for the two products:

Mountain Monster
Sales price $5,400
Variable cost of goods $3,285
Manufacturing margin $2,115
Variable selling expenses $1,035
Contribution margin $1,080
Fixed expenses $485
Income from operations $595
Desert Dragon
Sales price $5,250
Variable cost of goods sold $3,400
Manufacturing margin $1,850
Variable selling expenses $905
Contribution margin $945
Fixed expenses $310
Income from operations $635.00

In addition, the following sales unit volume information for the period is as follows: Mountain Monster

Sales unit volume 5,000
Desert Dragon
Sales unit volume 4,850

a. Prepare a contribution margin by product report.
b. Calculate the contribution margin ratio for each product as a percent, rounded to one decimal place.
c. Calculate the contribution margin ratio for each product as a percent, rounded to one decimal place.

Answers: 1

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PowerTrain Sports Inc. manufactures and sells two styles of All Terrain Vehicles (ATVs), the Mountai...