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eBook Question Content Area Product Profitability Analysis Galaxy Sports Inc. manufactures and sells two styles of All Terrain Vehicles (ATVs), the Conquistador and Hurricane, from
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Question Content Area
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 | $4,200 | $2,800 | ||
Variable cost of goods sold | (2,650) | (1,880) | ||
Manufacturing margin | $1,550 | $920 | ||
Variable selling expenses | (836) | (472) | ||
Contribution margin | $714 | $448 | ||
Fixed expenses | (340) | (180) | ||
Operating income | $374 | $268 |
In addition, the following sales unit volume information for the period is as follows:
Conquistador | Hurricane | |||
Sales unit volume | 3,100 | 2,300 |
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 | |
Contribution marginCost of goods soldDirect laborGross profitSales | $- Select - | $- Select - |
Fixed cost of goods soldFixed selling expensesManufacturing marginSalesVariable cost of goods sold | - Select - | - Select - |
Contribution marginCost of goods soldFixed manufacturing costsGross profitManufacturing margin | $- Select - | $- Select - |
Fixed cost of goods soldFixed selling expensesManufacturing marginSalesVariable selling expenses | - Select - | - Select - |
Contribution marginCost of goods manufacturedFixed manufacturing costsFixed salesManufacturing margin | $- Select - | $- Select - |
Contribution margin ratioFixed manufacturing costsFixed salesManufacturing marginVariable cost of goods sold | - Select -% | - Select -% |
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