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Please advise on this problem: PowerTrain Sports Inc. manufactures and sells two styles of ATV's, the Mountain Monster and the Desert Dragon, from a single

Please advise on this problem:

PowerTrain Sports Inc. manufactures and sells two styles of ATV's, the Mountain Monster and the 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 MonsterDesert Dragon

Sales Price$5,000.00$5,275.00

Variable cost of goods sold$3,275.00$3,500.00

Manufacturing margin$1,725.00$1,775.00

Variable selling expenses$225.00$825.00

Contribution margin$1,500.00$950.00

Fixed expenses$ 485.00$310.00

Income from operations$1,015.00$640.00

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

Mountain MonsterDesert Dragon

Sales unit volume4,9004,750

a.Make 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.

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 smaller/larger/ or same total contribution margin and the same/smaller/or larger contribution margin ratio.If the sales mix were shifted more toward the Desert Dragon/Mountain Monster line, the overall profitability of the company would increase.

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

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