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In: Accounting
PowerTrain Sports Inc. manufactures and sells two styles of All Terrain Vehicles (ATVs), the Mountain Monster...
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 $5,200.00 $5,300.00 3 Variable cost of goods sold 3,240.00 3,450.00 4 Manufacturing margin $1,960.00 $1,850.00 5 Variable selling expenses 712.00 1,108.00 6 Contribution margin $1,248.00 $742.00 7 Fixed expenses 470.00 320.00 8 Income from operations $778.00 $422.00 In addition, the following sales unit volume information for the period is as follows: Mountain Monster Desert Dragon Sales unit volume 4,800 4,650 Required: a. Prepare 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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| Contribution Margin by Product Report | ||||
| No of Units | 4,800 | 4,650 | ||
| Mountain Monster | Desert Dragon | |||
| Sales Revenue | A | $ 24,960,000 | $ 24,645,000 | |
| Less: Variable Cost of Goods Sold | $ -15,552,000 | $ -16,042,500 | ||
| Manufacturing Margin | $ 9,408,000 | $ 8,602,500 | ||
| Less: Variable Selling Expense | $ -3,417,600 | $ -5,152,200 | ||
| Contribution Margin | B | $ 5,990,400 | $ 3,450,300 | |
| Contribution Margin Ratio | B/A | 24.00% | 14.00% | |
ekkarill92 answered 2 years agoRelated Solutions
PowerTrain Sports Inc. manufactures and sells two styles of All Terrain Vehicles (ATVs), the Mountain Monster...
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
$5,200.00
$5,300.00
3
Variable cost of goods sold
3,240.00
3,450.00
4
Manufacturing margin
$1,960.00
$1,850.00
5
Variable selling expenses
712.00
1,108.00
6
Contribution margin
$1,248.00
$742.00
7
Fixed expenses
470.00...
PowerTrain Sports Inc. manufactures and sells two styles of All Terrain Vehicles (ATVs), the Mountain Monster...
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
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