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< eBook Product Profitability Analysis Galaxy Sports Inc. manufactures and sells two styles of All Terrain Vehicles (ATVS), the Conquistador and Hurricane, from a single
< eBook 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 $3,200 Variable cost of goods sold (3,150) (2,140) Manufacturing margin $1,850 $1,060 Variable selling expenses (950) (580) Contribution margin $900 $480 Fixed expenses (420) (190) Operating income $480 $290 In addition, the following sales unit volume information for the period is as follows: Sales unit volume Conquistador 3,200 Hurricane 2,300 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 Check My Work Conquistador Hurricane Previous Next Sales unit volume 3,200 2,300 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 % % Feedback
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