Answer:
The question requires that we prepare a contribution margin report based on the format provided in the full question which is attached herewith:
Explanation:
Contribution Margin Report by Product
Mountain Monster Desert Dragon
Revenue(4900*$5000)(4750*$5275) $24,500,000 $25,056,250
Variable cost of goods sold
($3275*4900)($3500*4750) ($16,047,500) ($16,625,000)
Manufacturing margin
($1725*4900)($1775*4750) $8,452,500 $8,431,250
Variable selling expenses
(225*4900)(825*4750) ($1,102,500) ($3,918,750)
Contribution margin
(1500*4900)(950*4750) $7,350,000 $4,512,500
Contribution margin ratio 30.00% 18.01%
(contribution/sales)
$7350,000/$24,500,000*100=30%
$4,512,500/ $25,056,250=18%
