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EX 20-12 Product profitability analysis Obj. 4 PowerTrain Sports Inc, manufactures and sells two styles of All Terrain Vehicles (ATVs), the Mountain Monster and Desert
EX 20-12 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: I Mountain Monster Desert Dragon 4,850 Sales unit volume 5,000 Exercise 20-12 $ $ A A $ What is the contribution margin (in dollars) of the Mountain Monster? What is the contribution margin of the Desert Dragon (in dollars)? What is the Mountain Monster contribution margin ratio (as a percentage to two decimal places)? What is the Desert Dragon contribution margin ratio (as a percentage to two decimal places)
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