13 Product Profitability Analysis 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 $6,400 $4,000 Variable cost of goods sold (4,030) (2,680) Manufacturing margin $2,370 $1,320 Variable selling expenses (1,218) (680) Contribution margin $1,152 $640 Fixed expenses (540) (260) Operating income $612 $380 In addition, the following sales unit volume information for the period is as follows: Sales unit volume Conquistador 3,400 Hurricane 2,400 a. Prepare a contribution margin by product report. Compute the contribution margin ratio for each product as a whole percent. Conquistaa Hurricane Sales unit volume 3,400 2,400 T a. Prepare a contribution margin by product report. Compute the contribution margin ratio for each product as a whole percent. Galaxy Sports Inc. Contribution Margin by Product Sales Variable cost of goods sold Manufacturing margin Variable selling expenses Conquistador Hurricane Contribution margin Contribution margin ratio % %