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Make a contribution margin for mountain monster

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Reference no: EM132515806

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:

1                                               Mountain Monster                  Desert Dragon

2  Sales price                                  $5,400.00                           $5,225.00

3 Variable cost of goods sold                  3,290.00                       3,500.00

4 Manufacturing margin                         $2,110.00                    $1,725.00

5 Variable selling expenses                   1,030.00                          889.00

6 Contribution margin                       $1,080.00                               $836.00

7 Fixed expenses                               475.00                             315.00

8 Income from operations                      $605.00                          $521.00

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

Mountain Monster    Desert Dragon

Sales unit volume

You are in Column Mountain Monster5,200

You are in Column Desert Dragon5,050

Required:

Question a. Need to make a contribution margin for Mountain Monster and Desert Dragon Revenues Sales less variable costs and variable selling and administrative expenses. 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.

Reference no: EM132515806

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