Instructions Power Train 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 2 Sales price $5,200.00 $5,300.00 3 Variable cost of goods sold 3,240.00 3,450.00 4 Manufacturing margin $1,960.00 $1,850.00 5 Variable selling expenses 712.00 1,108.00 Instructions Mountain Desert Dragon Monster 2 Sales price $5,200.00 $5,300.00 3 Variable cost of goods sold 3,240.00 3,450.00 Manufacturing margin $1,960.00 51,850.00 5 Variable selling expenses 712.00 1,108.00 6 Contribution margin $1,248.00 $742.00 Fixed expenses 470.00 320.00 Income from operations $778.00 $422.00 Instructions In addition, the following sales unit volume information for the period is as follows: Desert Dragon Mountain Monster 4,800 Sales unit volume 4,650 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? Contribution Margin Report Shaded cells have feedback. 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. Question not attempted. Power Train Sports Inc. Score: 0/78 Contribution Margin by Product Mountain Desert Dragon Monster Contribution Margin Report Power Train Sports Inc. Score: 0/78 Contribution Margin by Product Mountain Desert Dragon Monster 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 Instructions Final Question Shaded cells have feedback. b. What advice would you give to the management of Power Train Sports Inc. regarding the relative profitability of the two products? The Mountain Monster line provides the larger total contribution margin and the larger contribution margin ratio. If the sales mix were shifted more toward the Mountain Monster line, the overall profitability of the company would increase. Points: 3/3