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 Desert Dragon Monster 2 Sales price $5,500.00 $5,300.00 3 Variable cost of goods sold 3.290.00 3,300.00 4 Manufacturing margin $2,210.00 $2,000.00 s Variable selling expenses 1,000.00 1.152.00 6 Contribution margin $1,210.00 $848.00 7 Fixed expenses 475.00 320.00 8 Income from operations $735.00 $528.00 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 Required: a. Prepare a contribution margin by product report. Calculate the contribution margin ratio for each. Refer to the Amount Descriptions list provided

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 Desert Dragon Monster 2 Sales price $5,500.00 $5,300.00 3 Variable cost of goods sold 3.290.00 3,300.00 4 Manufacturing margin $2,210.00 $2,000.00 s Variable selling expenses 1,000.00 1.152.00 6 Contribution margin $1,210.00 $848.00 7 Fixed expenses 475.00 320.00 8 Income from operations $735.00 $528.00 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 Required: a. Prepare a contribution margin by product report. Calculate the contribution margin ratio for each. Refer to the Amount Descriptions list provided

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Amount descriptions:

Contribution margin

contribution margin ratio

cost of goods sold

fixed expenses

gross profit

revenues

variable cost of goods sold

variable selling expenses

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.
PowerTrain Sports Inc.
Contribution Margin by Product
Mountain
1
Desert Dragon
Monster
2 Revenues
3
4
5
6
7

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
1
Desert Dragon
Monster
2 Sales price
$5,500.00
$5,300.00
3 Variable cost of goods sold
3,290.00
3,300.00
4 Manufacturing margin
$2,210.00
$2,000.00
5 Variable selling expenses
1,000.00
1,152.00
6 Contribution margin
$1,210.00
$848.00
7 Fixed expenses
475.00
320.00
8 Income from operations
$735.00
$528.00
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
Required:
a. Prepare a contribution margin by product report. Calculate the contribution margin ratio for each. Refer to the Amount Descriptions list provided

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