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Product Profitability Analysis

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 $$5,000$ $$3,000$

Variable cost of goods sold $3,1502,010$

Manufacturing margin $$1,850$ $$990$

Variable selling expenses $1,150390$

Contribution margin $$700$ $$600$

Fixed expenses $330240$

Income from operations $$370$ $$360$

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

Mountain Monster Desert Dragon

Sales unit volume $2,6002,000$

Question Content Area

a$.$ Prepare a contribution margin by product report. Calculate the contribution margin ratio for each product as a whole percent.

PowerTrain Sports Inc.

Contribution Margin by Product

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Mountain Monster Desert Dragon

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Question Content Area

Product Profitability Analysis

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 $$5,000$ $$3,000$

Variable cost of goods sold $3,1502,010$

Manufacturing margin $$1,850$ $$990$

Variable selling expenses $1,150390$

Contribution margin $$700$ $$600$

Fixed expenses $330240$

Income from operations $$370$ $$360$

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

Mountain Monster Desert Dragon

Sales unit volume $2,6002,000$

Question Content Area

a$.$ Prepare a contribution margin by product report. Calculate the contribution margin ratio for each product as a whole percent.

PowerTrain Sports Inc.

Contribution Margin by Product

blank

Mountain Monster Desert Dragon

$$-$ Select $-$

$$-$ Select $-$

$-$ Select $-$

$-$ Select $-$

$$-$ Select $-$

$$-$ Select $-$

$-$ Select $-$

$-$ Select $-$

$$-$ Select $-$

$$-$ Select $-$

$-$ Select $-$

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