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Question

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 $5,225.00
  2. Variable cost of goods sold 3,290.00 3,500.00
  3. Manufacturing margin $2,110.00 $1,7250.00
  4. Variable selling expenses 1,030.00 889.00
  5. Contribution margin $1,080.00 $836.00
  6. Fixed expenses 475.00 315.00
  7. 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 5,200 5,050


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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a. Prepare a contribution margin by product report. Calculate the contribution margin ratio for each. PowerTrain Sports... View the full answer

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