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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
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 produ Mountain Monster Desert Dragon Sales price $6,400 $4,200 Variable cost of goods sold 4,030 2,810 $2,370 $1,390 Manufacturing margin Variable selling expenses 898 760 Contribution margin $1,472 $630 Fixed expenses 250 690 $782 Income from operations $380 In addition, the following sales unit volume information for the period is as follows: Desert Dragon Mountain Monster 2,100 Sales unit volume 1,500 a. Prepare a contribution margin by product report. Calculate the contribution margin ratio for each product as a whole percent. 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 Feedback Check My Work
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