Product profitability analysispowertrain 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 dragonsales price $5,000 $3,200 variable cost of goods sold 3,150 2,140 manufacturing margin $1,850 $1,060 variable selling expenses 900 452 contribution margin $950 $608 fixed expenses 450 240 income from operations $500 $368 in addition, the following sales unit volume information for the period is as follows: mountain monster desert dragonsales unit volume 3,300 2,400 a. prepare a contribution margin by product report. calculate the contribution margin ratio for each product as a whole percent. powertrain sports inc. contribution margin by productmountain monster desert dragon$ $$ $$ $% %b. what advice would you give to the management of powertrain sports inc. regarding the relative profitability of the two products? the (mountain monster/desert dragon) line provides the largest total contribution margin and the largest contribution margin ratio. if the sales mix were shifted more toward the (mountain monster/desert dragon) line, the overall profitability of the company would increase.

Baldwin has negotiated a new labor contract for the next round that will affect the cost for their product bold. labor costs will go from $7.91 to $8.41 per unit. in addition, their material costs have fallen from $13.66 to $12.66. assume all period costs as reported on baldwin's income statement remain the same. if baldwin were to pass on half the new costs of labor and half the savings in materials to customers by adjusting the price of their product, how many units of product bold would need to be sold next round to break even on the product?

Onsider the following subscription behavior information from genie, a web site that provides tools for constructing a family tree (ancestor search). subscriptions cost $9.99 per month, but you are charged for the entire year at the time of purchase. there is a one-year minimum term when you sign up for the service. once purchased, subscriptions are set to renew automatically unless the subscriber cancels them. when a membership renews, it renews for a one-year term and again you are charged for the entire year. there are no variable costs associated with providing this service to an individual customer, but genie does engage in customer relationship activities that they believe will increase customer retention. these customer relationship activities cost genie about $10 per year per customer. based on a sample of 1000 customers that joined genie five years ago, near the time when the company was founded, they were able to determine how many of those customers remained subscribers in the second year, third year etc. based on this information, genie calculated the average annual retention rate to be 20%. genie uses an annual discount rate of 8%. a. last year, genie spent $10,000 placing advertisements on google. genie management believes that these advertisements were responsible for about 300 new subscribers. would you recommend to genie management that they purchase more google ads? b. suppose a newly-introduced loyalty program increases the number of customers that remained to 30%. does this new data change your answer to 9.a? c. do you have any hesitations or concerns about making recommendations to management based on your above estimate of customer lifetime value?

Barbara flynn is in charge of maintaining hospital supplies at general hospital. during the past year, the mean lead time demand for bandage bx-5 was 65 (and was normally distributed). furthermore, the standard deviation for bx-5 was 6. ms. flynn would like to maintain a 90% service level.refer to the standard normal table for z-values.a) what safety stock level do you recommend for bx-5? safety stock=)what is the appropriate reorder point? reorder point=