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 $5,000.00 3,275.00 $1,725.00 225.00 $1,500.00 485.00 $1,015.00 $5,275.00 3,500.00 $1,775.00 825.00 $950.00 310.00 $640.00 3 Variable cost of goods sold Manufacturing margin 5 Variable selling expenses 6 Contribution margin 7 Fixed expenses 8 Income from operations 4

In addition, the following sales unit volume information for the period is as follows:

	Mountain Monster	Desert Dragon
Sales unit volume	4,900	4,750

Answer 1

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