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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 facility
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 $5,600 $3,400 Variable cost of goods sold (3,530) (2,280) Manufacturing margin $2,070 $1,120 Variable selling expenses (894) (576) Contribution margin $1,176 $544 Fixed expenses (550) (220) Operating income $626 $324 In addition, the following sales unit volume information for the period is as follows: Sales unit volume Conquistador 3,600 Hurricane 2,700 Conquistador Hurricane Sales 20,160,000 $ 9,180,000 Variable cost of goods sold -12,708,000 -6,156,000 Manufacturing margin $ Variable selling expenses 3,218,400 1,555,200 Contribution margin Contribution margin ratio % %
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