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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:
PowerTrain Sports Inc. manufactures and sells two styles of All
In addition, the following sales unit volume information for the period is as follows:
PowerTrain Sports Inc. manufactures and sells two styles of All
a. Prepare a contribution margin by product report. Calculate the contribution margin ratio for each product as a whole percent, rounded to two decimal places.
b. What advice would you give to the management of PowerTrain Sports Inc. regarding the relative profitability of the two products?
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