Question: 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),




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, f manufacturing facility. The manufacturing facility operates at 100% of capacity. The following per unit information is available for the t Mountain Desert Dragon $5,300.00 3,450.00 1,850.00 108.00 742.00 20.00 422.00 Monster 2 Sales price Variable cost of goods sold Manufacturing margin Variable selling expenses Contribution margin 5,200.00 ,240.00 1,960.00 712.00 $1,248.00 470.00 778.00 s 7 Fixed expenses 8 Income from operations In addition, the following sales unit volume information for the period is as follows: Mountain Monster Desert Dragon Sales unit volume 4,800 4,650 Required a Prepare a contribution margin by product report. Calculate the contribution margin ratio for each. Refer to the Amount Descriptions list 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 Final Question b. What advice would you give to the management of PowerTrain Sports Inc. regarding the relative profitability of the two products? The Mountain Monster line provides the total contribution margin and the shifted more toward the line contribution margin ratio. If the sales mix were line, the overall profitability of the company would increase
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