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 Monster Desert Dragon
Sales price $5,400.00 $5,250.00
Variable cost of goods sold 3,285.00 3,400.00
Manufacturing margin $2,115.00 $1,850.00
Variable selling expenses 1,035.00 905
Contribution margin $1,080.00 $945.00
Fixed expenses 485 310
Income from operations $595.00 $635.00

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

Required:
a. Prepare a contribution margin by product report. Calculate the contribution margin ratio for each.
b. What advice would you give to the management of PowerTrain Sports Inc. regarding the relative profitability of the two products?

Ryan terlecki organized a new internet company, capuniverse, inc. the company specializes in baseball-type caps with logos printed on them. ryan, who is never without a cap, believes that his target market is college and high school students. you have been hired to record the transactions occurring in the first two weeks of operations. issued 2,900 shares of $0.01 par value common stock to investors for cash at $29 per share. borrowed $68,000 from the bank to provide additional funding to begin operations; the note is due in two years. paid $1,000 for the current month's rent of a warehouse and another $1,000 for next month's rent. paid $1,440 for a one-year fire insurance policy on the warehouse (recorded as a prepaid expense). purchased furniture and fixtures for the warehouse for $16,000, paying $3,200 cash and the rest on account. the amount is due within 30 days. purchased for $2,800 cash the university of pennsylvania, notre dame, the university of texas at austin, and michigan state university baseball caps as inventory to sell online. placed advertisements on google for a total of $340 cash. sold caps totaling $1,900, half of which was charged on account. the cost of the caps sold was $1,100. (hint: make two entries.) made full payment for the furniture and fixtures purchased on account in (e). received $280 from a customer on account.