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
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:

	Mountain Monster	Desert Dragon
Sales unit volume	5,200	5,050

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.

Amount Descriptions
Contribution margin
Contribution margin ratio
Cost of goods sold
Fixed expenses
Gross profit
Manufacturing margin
Sales
Variable cost of goods sold
Variable selling and administrative expenses

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.

PowerTrain Sports Inc.

Contribution Margin by Product

1		Mountain Monster	Desert Dragon
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