Outdoor Motor Sports Inc. manufactures and sells two styles of ATVs, 4-wheel drive (4WD) and 2-wheel drive (2WD), from a single manufacturing facility. The manufacturing facility operates at 100% of capacity. The following per unit information is available for the two products:

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

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 Outdoor Motor Sports Inc. regarding the relative profitability of the two products?

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4WD 2WD $5,250 Sales price Variable cost of goods sold Manufacturing margin Variable selling expenses Contribution margin Fixed expenses $3,250 3,100 $2,150 2,100 $1,150 890 500 $ 650 $1,260 460 200 $ 800 Income from operations $ 450 4WD 2WD Sales unit volume 3,100 2,500