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:

Sales price

Mountain Monster         $5,400.00

Desert Dragon                  $5,300.00

Variable cost of goods sold

Mountain Monster         3,255.00

Desert Dragon                  3,400.00

Manufacturing margin

Mountain Monster         $2,145.00

Desert Dragon                  $1,900.00

Variable selling expenses

Mountain Monster         1,065.00

Desert Dragon                  946.00

Contribution margin

Mountain Monster         $1,080.00

Desert Dragon                  $954.00

Fixed expenses

Mountain Monster         485.00

Desert Dragon                  305.00

Income from operations

Mountain Monster         $595.00

Desert Dragon                  $649.00

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

Sales unit volume

Mountain Monster         5,300

Desert Dragon 5,150

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.   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.

Mountain Monster                         Desert Dragon

1. xxxxxxx

2.xxxxxxxx

3.xxxxxxx

4.xxxxxxx

5.xxxxxxxx

6.xxxxxx

7.xxxxxx

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:

Sales price

Mountain Monster         $5,400.00

Desert Dragon                  $5,300.00

Variable cost of goods sold

Mountain Monster         3,255.00

Desert Dragon                  3,400.00

Manufacturing margin

Mountain Monster         $2,145.00

Desert Dragon                  $1,900.00

Variable selling expenses

Mountain Monster         1,065.00

Desert Dragon                  946.00

Contribution margin

Mountain Monster         $1,080.00

Desert Dragon                  $954.00

Fixed expenses

Mountain Monster         485.00

Desert Dragon                  305.00

Income from operations

Mountain Monster         $595.00

Desert Dragon                  $649.00

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

Sales unit volume

Mountain Monster         5,300

Desert Dragon 5,150

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.   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.

Mountain Monster                         Desert Dragon

1. xxxxxxx

2.xxxxxxxx

3.xxxxxxx

4.xxxxxxx

5.xxxxxxxx

6.xxxxxx

7.xxxxxx

 

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