Answered step by step
Verified Expert Solution
Link Copied!
Question
1 Approved Answer

a. Prepare a contribution margin by product report. Calculate the contribution margin ratio for each. Refer to the Amount Descriptions list provided for the exact

image text in transcribedimage text in transcribed

a. Prepare a contribution margin by product report. Calculate the contribution margin ratio for each. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. PowerTrain Sports Inc. Score: 0/78 Contribution Margin by Product Mountain Desert Dragon Monster 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 $5,400.00 $5,300.00 Variable cost of goods sold 3,255.00 3,400.00 Manufacturing margin $2,145.00 $1,900.00 Variable selling expenses 1,065.00 946.00 Contribution margin $1,080.00 $954.00 Fixed expenses 485.00 305.00 Income from operations $595.00 $649.00 In addition, the following sales unit volume information for the period is as follows: Mountain Monster Desert Dragon 5,150 Sales unit volume 5,300 Required: a. Prepare a contribution margin by product report. Calculate the contribution margin ratio for each. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. b. What advice would you give to the management of Power Train Sports Inc. regarding the relative profitability of the two products

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image
Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Acca Paper 3.1 Audit And Assurance

Authors: N/a

1st Edition

075172680X, 978-0751726800

More Books

Students explore these related Accounting questions