Question: I am drawing a blank. The contribution margin for this os calculated how? PowerTrain Sports Inc. manufactures and sells two styles of All Terrain Vehicles

I am drawing a blank. The contribution margin for this os calculated how?

I am drawing a blank. The contribution margin for this os calculated

how? PowerTrain Sports Inc. manufactures and sells two styles of All Terrain

Vehicles (ATVS), the Mountain Monster and Desert Dragon, from a single manufacturing

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 Desert Dragon Monster Sales price $5,225.00 $5,400.00 7 3Variable cost of goods sold 3,500.00 3,290.00 Manufacturing margin $2,110.00 $1,725.00 4 Variable selling expenses 1,030.00 889.00 Contribution margin $1,080.00 $836.00 6 7 Fixed expenses 475.00 315.00 $605.00 $521.00 Income from operations In addition, the following sales unit volume information for the period is as follows: Desert Dragon Mountain Monster Sales unit volume 5,200 5,050 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 Power Train Sports Inc. regarding the relative profitability of the two products? 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 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 PowerTrain Sports Inc. Contribution Margin by Product Mountain Desert Dragon Monster 4 6

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