50.1K

Verified Solution

Link Copied!

Chapter 6-Homework ook Print Item Calculator Product Profitability Analysis 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 Sales price $6,600 $4,000 Variable cost of goods sold 4,160 2,680 Manufacturing margin $2,440 $1,320 Variable selling expenses 1,252 400 Contribution margin $1,188 $920 Fixed expenses 560 370 $628 $550 Income from operations In addition, the following sales unit volume information for the period is as follows: Mountain Monster Desert Dragon Sales unit volume 1,800 1,400 a. Prepare a contribution margin by product report. Calculate the contribution margin ratio for each product as a whole percent PowerTrain Sports Inc. Contribution Margin by Product Desert Dragon Mountain Monster Check My Work 5 more Check My Work uses remaining. Previous Next Submit Assignment for Grading Assignment Score: 0.0% Save and Exit Chapter 6-Homework ook Calculator Print Item In addition, the following sales unit volume information for the period is as follows: Mountain Monster Desert Dragon Sales unit volume 1,800 1,400 a. Prepare a contribution margin by product report. Calculate the contribution margin ratio for each product as a whole percent. PowerTrain Sports Inc. Contribution Margin by Product Mountain Monster Desert Dragon b. What advice would you give to the management of PowerTrain Sports Inc. regarding the relative profitability of the two products? The line provides the largest total contribution margin and the largest contribution margin ratio. If the sales mix were shifted more toward the line, the overall profitability of the company would increase. Check My Work 5 more Check My Work uses remaining. Previous Next Submit Assignment for Grading Assignment Score: 0.0% Save and Exit

Answer & Explanation Solved by verified expert

See Answer