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Galaxy Sports Inc. manufactures and sells two styles of All Terrain Vehicles (ATVs), the Conquistador and Hurricane, from a single manufacturing facility. The manufacturing
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 products: Sales price Variable cost of goods sold Manufacturing margin Variable selling expenses Contribution margin Fixed expenses Operating income Conquistador $4,600 (2,900) $1,700 (780) $920 (430) $490 Hurricane $3,000 (2,010) $990 (420) $570 (230) $340 In addition, the following sales unit volume information for the period is as follows: Sales unit volume Conquistador 2,200 Hurricane 1,600 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 Sales Variable cost of qoods sold Manufacturinq marqin Variable sellinq expenses Contribution marqin Contribution marqin ratio
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