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EX 20-12 Product profitability analysis A Desert Dragon PowerTrain Sports Inc. manufactures and sells two styles of All Terrain Vehicles (ATVS), the utribution margin, Mountain Monster and Desert Dragon, from a single manufacturing facility. The man Obj. 4 4,583,250 facility operates at 100% of capacity. The following pe r-unit information is available for the two products Variable cost of goods sold Manufacturing margirn Variable selling expenses Contribution margin... Fixed expenses. Income from operations Mountain Monster $5,400 3,285 $2,115 1,035 1,080 Desert Dragon $5,250 3,400 $1,850 905 $945 310 635 485 595 volume information for the period is as follows: In addition, the following sales unit Desert Dragon 4,850 Mountain Monster 5,000 Sales unit volume A. Prepare a contribution margin by product report. Calculate the contribution margin ratio B. What advice would you give to the management of PowerTrain Sports Inc. regard- for each ing the relative profitability of the two products? Obj. 4 itu analysiS