Ambunt Descriptions Contribution Margin Report Final Questio

Ambunt Descriptions Contribution Margin Report Final Question Instructions PowerTrain Sports inc. manufactures and sells two styles of All manufacturing facility operates at 100% of capacity. The following per unit information is available for the two products: l Terrain Vehicles (ATVs), the Mountain Monster and Desert Dragon, from a single manufacturing tacility The MoutainDesert Dragon Monster 2 Sales price 3 Variable cost of goods sold 4 Manufacturing margin s Variable selling expenses 6 Contribution margin 7 Fixed expenses 8 Income from operations $5,400.00 3,275.00 $2.125.00 937.00 51.188.00 475.00 $713.00 $5.325.00 3,200.00 $2,125.00 1,273.00 $852.00 310.00 $542.00 Previous 1:49 AM 2AR6/13/20

Solution

Power Train Sports Inc. Contribution Margin by Product 1 Mountain Monster Desert Dragon 2 Sales Price $ 5,400.00 $ 5,325.00 3 Variable Cost of Goods sold $ 3,275.00 $ 3,200.00 4 Manufacturing Margin $ 2,125.00 $ 2,125.00 5 Variable Selling Expense $     937.00 $ 1,273.00 6 Contribution Margin $ 1,188.00 $     852.00 7 Contribution Margin Ratio 22% 16% Workings: Contribution Margin Ratio = Contribution Margin / Sales Mountain Monster Desert Dragon Contribution Margin Ratio = ($1,188.00 / $5,400.00) ($852.00 / $5,325.00) 22% 16%