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PowerTrain Sports Inc. manufactures and sells two styles of All Terrain Vehicles (ATVs), the Mountain Monster and Desert Dragon

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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 Monster Desert Dragon

  1. Sales price $5,400.00 $5,300.00
  2. Variable cost of goods sold 3,255.00 3,400.00
  3. Manufacturing margin $2,145.00 $1,900.00
  4. Variable selling expenses 1,065.00 946.00
  5. Contribution margin $1,080.00 $954.00
  6. Fixed expenses 485.00 305.00
  7. Income from operations $595.00 $649.00

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

Mountain Monster Desert Dragon

 Sales unit volume 5,300 5,150

Required: 

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.

 
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