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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 $5,800 $3,600 Variable cost of goods sold (3,650) (2,410) Manufacturing margin $2,150 $1,190 Variable selling expenses (874) (650) Contribution margin $1,276 $540 Fixed expenses (600) (220) Operating income $676 $320 In addition, the following sales unit volume information for the period is as follows: Sales unit volume Conquistador 2,100 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 X x Variable cost of goods sold x X Manufacturing margin X X Variable selling expenses X x Contribution margin x Contribution margin ratio X % X %
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