Product profitability analysis OBJ. 4 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 Desert Dragon Sales price $5,400 $5,250 Variable cost of goods sold 3,285 3,400 Manufacturing margin $2,115 $1,850 Variable selling expenses 1,035 905 Contribution margin $1,080 $ 945 Fixed expenses 485 310 Income from operations $ 595 $ 635 In addition, the following sales unit volume information for the period is as follows:
Mountain Monster Desert Dragon Sales unit volume 5,000 4,850

a. Prepare a contribution margin by product report. Calculate the contribution margin ratio for each product as a whole percent, rounded to two decimal places.

b. What advice would you give to the management of PowerTrain Sports Inc.
regarding the relative profitability of the two products?