Product profitability analysis

Product profitability analysis Instructions Amount Descriptions Contribution Margin Report Final Question Instructions 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 1 Desert Dragon Monster 2 Sales price $5,400.00 $5,325.00 3 Variable cost of goods sold 3,275.00 3,200.00 4 Manufacturing margin $2,125.00 $2,125.00 5 Variable selling expenses 937.00 1,273.00 6 Contribution margin $1,188.00 $852.00 7 Fixed expenses 475.00 310.00 8 Income from operations $713.00 $542.00 In addition, the following sales unit volume information for the period is as follows: Mountain Monster Desert Dragon Sales unit volume 5,40 5,250 Required: a. Prepare a contribution margin by product report. Calculate the contribution margin ratio for each. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. b. What advice would you give to the management of PowerTrain Sports Inc. regarding the relative profitability of the two products? Amount DescriptionsAmount Descriptions Amount Descriptions Contribution margin Contribution margin ratio Cost of goods sold Fixed expenses Gross profit Manufacturing margin Revenues Variable cost of goods sold Variable selling expenses Contribution Margin Report Shaded cells have feedback. a. Prepare a contribution margin by product report. Calculate the contribution margin ratio for each. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. Question not attempted. PowerTrain Sports Inc. Score: 0/78 Contribution Margin by Product Mountain Desert Dragon Monster K Points: 0 / 18