Question
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 $5,200 $3,200
Variable cost of goods sold (3,280) (2,140)
Manufacturing margin $1,920 $1,060
Variable selling expenses (776) (388)
Contribution margin $1,144 $672
Fixed expenses (540) (270)
Operating income $604 $402
In addition, the following sales unit volume information for the period is as follows:
Conquistador Hurricane
Sales unit volume 3,500 2,500
a.Prepare acontribution marginby product report. Compute the contribution margin ratio for each product as a whole percent.
Conquistador Hurricane
Sales: ? ?
Variable Cost of goods sold: ? ?
Manufacturing Margin: ? ?
Variable selling expenses: ? ?
Contribution Margin: ? ?
Contribution Margin ratio: ? ?
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