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

Sales price$5,200$3,20

Variable cost of goods sold(3,280)

Manufacturing margin$1,920

Variable selling expenses(828)

Contribution margin$1,092

Fixed expenses(510)

Operating income$582

Hurricane

Sales price $3,200

Variable cost of goods sold(2,140)

Manufacturing margin $1,060

Variable selling expenses (580)

Contribution margin $480

Fixed expenses (190)

Operating income $290

In addition, the following sales unit volume information for the period is as follows:

1. Conquistador 2,400 sales unit volume
2. Hurricane 1700 sales unit volume

Compute the contribution margin ratio for each product as a whole percent.

Galaxy Sports Inc.Contribution Margin by ProductConquistadorHurricane

Conquistador Hurricane

___________ $ $

___________ $ $

___________ $ $

___________ $ $

___________ $ $

___________ $ $

___________ $ $

b.What advice would you give to the management of Galaxy Sports Inc. regarding the profitability of the two products?

1. The_______line provides the largest total contribution margin and the largest contribution margin ratio. If the sales mix were shifted more toward the_________

line, the overall profitability of the company would increase.