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Pro Bike manufactures and sells two types of bikes: road bikes and mountain bikes. The company sold 630 units of each type of bike during
Pro Bike manufactures and sells two types of bikes: road bikes and mountain bikes. The company sold 630 units of each type of bike during the year.
Per unit | Road bikes | Mountain bikes |
---|---|---|
Sales price | $ 1,300 | $ 900 |
Variable cost of goods sold | 860 | 480 |
Variable selling and administrative expenses | 50 | 60 |
a. Compute contribution margin (in dollars) for each product. b. Compute contribution margin ratio for each product. Which product has the better contribution margin ratio?
Required A Required B Compute total contribution margin (in dollars) for each product. Road bikes Mountain bikes Contribution margin Required A Required BStep by Step Solution
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