PowerTrain Sports Inc. manufactures and sells two styles of All Terrain Vehicles

Question

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 ,290.00 $2.210.00 1,000.00 $1,210.00 475.00 $735.00 5,300.00 3,300.00 $2,000.00 1152.00 848.00 320.00 $528.00 Variable cost of goods sold 4 Manufacturing margin Variable selling expenses 6 Contribution margin 7Fixed expenses 8 Income from operations 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

Explanation / Answer

contribution margin ratio =contribution /sales

Mountain monster= 6050000/27500000=.22 or 22%

Desert dragon = 4112800/25705000=.16or 16%

contribution margin Income statement Mountain monster Desert dragon sales 5500*5000=27500000 5300*4850=25705000 less:variable cost variable cost of goods sold 3290*5000= 16450000 3300*4850= 16005000 variable selling expense 1000*5000= 5000000 1152*4850= 5587200 Total variable cost (21450000) (21592200) contribution margin 6050000 4112800 less:fixed cost 475*5000=(2375000) (1552000) Income from operations 3675000 2560800

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.