Product Profitability Analysis

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:

	Mountain Monster		Desert Dragon
Sales price	$5,800		$3,400
Variable cost of goods sold	3,650		2,280
Manufacturing margin	$2,150		$1,120
Variable selling expenses	990		508
Contribution margin	$1,160		$612
Fixed expenses	550		240
Income from operations	$610		$372

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

	Mountain Monster		Desert Dragon
Sales unit volume	1,800		1,300

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

PowerTrain Sports Inc.
Contribution Margin by Product
	Mountain Monster	Desert Dragon
Revenues	$	$
Variable cost of goods sold
Manufacturing margin	$	$
Variable selling expenses
Contribution margin	$	$
Contribution margin ratio	%	%