Financial and Managerial Accounting: Ex20-12 PowerTrain Sports Inc. manufactures and sells

Financial and Managerial Accounting 
Ex20-12 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 5,400 5,250 
Variable cost of goods sold 3,285 3,400 
Manufacturing margin 2,115 1,850 
Variable selling expenses 1,035 905 
Contribution margin 1,080 945 
Fixed expenses 485 310 
Income from operations $595 $635 
In addition, the following sales unit volume information for the period is as follows: 
Mountain Monster Desert Dragon 
Sales unit volume 5,000 4,850 

a. Prepare a contribution margin by product report. Calculate the contribution margin ratio for each product as a percent, rounded to one decimal place. 
b. What advice would you give to the management of PowerTrain Sport regarding the relative profitability of the two products?
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