Snow Motor Sports Inc. manufactures and sells two styles of snowmobiles, Arctic and Cat from a single manufacturing facility. The manufacturing facility operates at 100% of capacity. The following per unit information is available for the two products:

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

a. Prepare a contribution margin by product report. Calculate the contribution margin ratio for each product as a whole percent, rounded to two decimal places.
b. What advice would you give to the management of Snow Motor Sports Inc. regarding the relative profitability of the twoproducts?

  • CreatedJune 27, 2014
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