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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?

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Required A Required B Compute total contribution margin (in dollars) for each product. Road bikes Mountain bikes Contribution margin Required A Required B

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