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Galaxy Sports Inc. manufactures and sells two styles of All Terrain Vehicles (ATVs), the Conquistador and Hurricane, from a single manufacturing facility. The manufacturing facility
Galaxy Sports Inc. manufactures and sells two styles of All Terrain Vehicles (ATVs), the Conquistador and Hurricane, from a single manufacturing facility. The manufacturing facility operates at 100% of capacity. The following per-unit information is available for the two products:
Conquistador | Hurricane | |||
Sales price | $5,600 | $3,600 | ||
Variable cost of goods sold | (3,530) | (2,410) | ||
Manufacturing margin | $2,070 | $1,190 | ||
Variable selling expenses | (1,174) | (650) | ||
Contribution margin | $896 | $540 | ||
Fixed expenses | (420) | (220) | ||
Operating income | $476 | $320 |
In addition, the following sales unit volume information for the period is as follows:
Conquistador | Hurricane | |||
Sales unit volume | 2,600 | 1,900 |
Question Content Area
a. Prepare a contribution margin by product report. Compute the contribution margin ratio for each product as a whole percent.
Conquistador | Hurricane | |
Sales | ||
Fixed cost of goods | ||
Manufacturing margin | ||
Variable selling expenses | ||
Contribution margin | ||
Contribution margin ratio |
Help me answer A.
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