Galaxy Sports Inc. manufactures and sells two styles of All Terrain Vehicles (ATV), the Conquistador and Hurricane, from a single manufactuting lad The manufacturing facility operates at 100% of capacity. The following per-unit Information is available for the two products: Conquistador Hurricane Sales price $6,400 $3,800 Variable cost of goods sold (4,030) (2.550) Manufacturing margin $2.370 $1,250 Variable selling expenses (1,026) (604) Contribution margin $1,344 $646 Fixed expenses (630) (260) Operating Income $714 5386 In addition, the following sales unit volume information for the period is as follows: Conquistador Hurricane Sales unit volume 3,300 2,300 a. Prepare a contribution marcin 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 In addition, the following sales unit volume Information for the period is as follows: Conquistador Hurricane Sales unit volume 3,300 2,300 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 Variable cost of goods sold Manufacturing margin Variable selling expenses Contribution margin Contribution margin ratio b. What advice would you give to the management of Galaxy Sports Ince regarding the profitability of the two products The Conquistador -line provides the largest total contribution margin and the largest contribution margin ratio If the sales mix were shift more toward the Hurricane line the overall profitability of the company would increase