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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 $5,200 $3,400 Variable cost of goods sold (3,280) (2,280) Manufacturing margin $1,920 $1,120 Variable selling expenses (984) (644) Contribution margin $936 $476 Fixed expenses (440) (190) Operating income $496 $286 In addition, the following sales unit volume information for the period is as follows: Sales unit volume Conquistador 2,900 Hurricane 2,100 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 Check My Work 3 more Check My Work uses remaining Previous Next
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