Question
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
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 | $5,325.00 |
| 3 | Variable cost of goods sold | 3,275.00 | 3,200.00 |
| 4 | Manufacturing margin | $2,125.00 | $2,125.00 |
| 5 | Variable selling expenses | 937.00 | 1,273.00 |
| 6 | Contribution margin | $1,188.00 | $852.00 |
| 7 | Fixed expenses | 475.00 | 310.00 |
| 8 | Income from operations | $713.00 | $542.00 |
In addition, the following sales unit volume information for the period is as follows:
| Mountain Monster | Desert Dragon | |
|---|---|---|
| Sales unit volume | 5,400 | 5,250 |
Prepare a contribution margin by product report. Calculate the contribution margin ratio for each product as a percent, rounded to one decimal place. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries.
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| Mountain Monster | Desert Dragon |
| Sales |
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| Variable Cost of Goods Sold |
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| Manufacturing Margin |
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| Variable Selling and Admin |
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| Contribution Margin |
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| Contribution Margin Ratio |
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Accounting And Financial Analysis In The Hospitality Industry
Authors: Jonathan A. Hales
1st Edition
0750678968, 978-0750678964
