Product Profitability Analysis

Outdoor Motor Sports Inc. manufactures and sells two styles of All Terrain Vehicles (ATVs), the 4-wheel drive (4WD), and 2-wheel drive (2WD) from a single manufacturing facility. The manufacturing facility operates at 100% of capacity. The following per unit information is available for the two products:

	4WD		2WD
Sales price	$6,800		$4,400
Variable cost of goods sold	4,280		2,950
Manufacturing margin	$2,520		$1,450
Variable selling expenses	956		702
Contribution margin	$1,564		$748
Fixed expenses	740		300
Income from operations	$824		$448

In addition, the following sales unit volume information for the period is as follows:

	4WD		2WD
Sales unit volume	2,900		2,100

Prepare a contribution margin by product report. Calculate the contribution margin ratio for each product as a whole percent.

Outdoor Motor Sports Inc.
Contribution Margin by Product
	4WD	2WD
	$	$
	$	$
	$	$
	%	%