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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 avaliable for the two products: Conquistador Hurricane Sales price $6,800 $4,200 Variable cost of goods sold (4,280) (2,810) Manufacturing margin $2,520 $1,390 Variable selling expenses (1,024) (676) Contribution margin $1,496 $714 Fixed expenses Operating income (700) $796 (290) $424 In addition, the following sales unit volume information for the period is as follows: Sales unit volume Conquistador 2,900 Hurricane 2,000 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 Conquistador Hurricane
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