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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 two products: Conquistador Hurricane Sales price $5,400 $3,600 Variable cost of goods sold (3,400) (2,410) Manufacturing margin $2,000 $1,190 Variable selling expenses (812) (434) Contribution margin $1,188 $756 Fixed expenses (560) (300) Operating income $628 $456 In addition, the following sales unit volume information for the period is as follows: Sales unit volume Conquistador 3,400 Hurricane 2,400 Galaxy Sports Inc. Contribution Margin by Product Sales Variable cost of goods sold Manufacturing margin Variable selling expenses Contribution margin Conquistador Hurricane Contribution margin ratio % % Feedback 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 Hurricano
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