Background Information:

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 $5,000 $3,000 Variable cost of goods sold (3,150) (2,010) Manufacturing margin $1,850 $990 Variable selling expenses (700) (420) Contribution margin $1, 150 $570 Fixed expenses (540) (230) Operating income $610 $340 In addition, the following sales unit volume information for the period is as follows: Conquistador Hurricane Sales unit volume 2,300 1,600a. 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 Conquistador Hurricane Sales Variable cost of goods sold Manufacturing margin Variable selling expenses Contribution margin Contribution margin ratio 23