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Pro Bike manufactures and sells two types of bikes: road bikes and mountain bikes. The company sold 620 units of each type of bike during
Pro Bike manufactures and sells two types of bikes: road bikes and mountain bikes. The company sold 620 units of each type of bike during the year. Per unit Road bikes Mountain bikes Sales price $ 1,300 $ 1,000 Variable cost of goods sold 850 550 Variable selling and administrative expenses 60 70 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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