Question
contribution marginby product report. Calculate the contribution margin ratio for each. Refer to the Amount Descriptions list provided for the exact wording of the answer
contribution marginby 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. 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:
1 Mountain Monster Desert Dragon
2 Sales price $5,300.000 $5,300.00
3 Variable cost of goods sold 3,210.00 3,350.00
4 Manufacturing margin $2,090.00 $1,950.00
5 Variable selling expenses 1,030.00 1,102.00
6 Contribution margin $1,060.00 $848.00
7 Fixed expenses 470.00 305.00
8 Income from operations $590.00 $543.00
In addition, the following sales unit volume information for the period is as follows:
Mountain Monster Desert Dragon
Sales unit volume 4,800 4,650
a. Prepare acontribution marginby 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
Contribution Margin by Product
Mountain Monster Desert Dragon
1.
2.
3.
4.
5.
6
Amount Descriptions
Contribution margin
Contribution margin ratio
Cost of goods sold
Fixed expenses
Gross profit
Manufacturing margin
Revenues
Variable cost of goods sold
Variable selling expenses
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started