Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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: ? ?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: Carl S Warren, James M Reeve, Jonathan Duchac

12th Edition

0538478519, 9780538478519

More Books

Students also viewed these Accounting questions

Question

13. Give four examples of psychological Maginot lines.

Answered: 1 week ago