question archive PowerTrain Sports Inc
PowerTrain Sports Inc
Subject:AccountingPrice: Bought3
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 |
$1,080.00 |
$836.00 |
|
7 |
Fixed expenses |
475.00 |
315.00 |
|
8 |
Income from operations |
$605.00 |
$521.00 |
In addition, the following sales unit volume information for the period is as follows:
| Mountain Monster | Desert Dragon | |
|---|---|---|
| Sales unit volume | 5,200 | 5,050 |
Prepare a contribution margin by product report. Calculate the contribution margin ratio for each product as a percent, rounded to one decimal place. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries.
| Amount Descriptions | |
| Contribution margin | |
| Contribution margin ratio | |
| Cost of goods sold | |
| Fixed expenses | |
| Gross profit | |
| Manufacturing margin | |
| Sales | |
| Variable cost of goods sold | |
| Variable selling and administrative expenses |
Prepare a contribution margin by product report. Calculate the contribution margin ratio for each product as a percent, rounded to one decimal place. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries.
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PowerTrain Sports Inc. |
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Contribution Margin by Product |
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1 |
Mountain Monster |
Desert Dragon |
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2 |
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3 |
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4 |
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5 |
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7 |
