Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Hi Tutors need ya'lls help. I have looked at other people with a similar problem but there wasn't much guidance on how the answers were

Hi Tutors need ya'lls help. I have looked at other people with a similar problem but there wasn't much guidance on how the answers were found. I'm super grateful for you getting the answers for me but would also appreciate an explanation for myself to understand as well as for others to see in the future. Thank you.

image text in transcribedimage text in transcribedimage text in transcribed
Product profitability analysis Instructions Amount Descriptions Contribution Margin Report Final Question Instructions 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 $5,400.00 $5,225.00 his 3 Variable cost of goods sold 3,290.00 3,500.00 4 Manufacturing margin $2,110.00 $1,725.00 5 Variable selling expenses 1,030.00 889.00 6 Contribution margin $1,080.00 $836.00 7 Fixed expenses 475.00 315.00 8 Income from operations $605.00 $521.00 In addition, the following sales unit volume information for the period is as follows: Check My Work PreviouseBook Calculator Print Item In addition, the following sales unit volume information for the period is as follows: Mountain Monster Desert Dragon Sales unit volume 5,200 5,050 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 PowerTrain Sports Inc. regarding the relative profitability of the two products? Amount Descriptions 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 Check My Work PreviouseBook Calculator Print Item 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. Power Train Sports Inc. Contribution Margin by Product 1 Mountain Monster Desert Dragon N Final Question b. What advice would you give to the management of PowerTrain Sports Inc. regarding the relative profitability of the two products? The Mountain Monster line provides the total contribution margin and the contribution margin ratio. If the sales mix were shifted more toward the line, the overall profitability of the company would increase. Check My Work Previous

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

Payroll Accounting

Authors: Bernard J. Bieg, Judith Toland

21st Edition

1111531056, 978-1111531058

More Books

Students also viewed these Accounting questions

Question

What do you like to do in your spare time?

Answered: 1 week ago